But sales will likely improve in 2024 as mortgage rates continue to fall
Pending home sales in November remained unchanged from October, maintaining a steady pace amid fluctuating regional trends, according to a recent report by the National Association of REALTORS (NAR).
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, was reported at 71.6, mirroring the previous month’s figure. However, when compared year over year, the index shows a 5.2% decline in pending transactions. 
The index, with a baseline of 100 equivalent to the contract activity level in 2001, reflects ongoing adjustments in the housing market.
NAR chief economist Lawrence Yun said that while immediate contract activity has not increased, there is a growing interest among potential buyers.
“Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings,” Yun said in a release.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.61% as of December 28, down from 6.67% the week prior.
“The rapid descent of mortgage rates over the last two months stabilized a bit this week, but rates continue to trend down,” said Sam Khater, Freddie Mac’s chief economist. “Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation, and a nascent rebound in the housing market.”
The report showed that all four US regions experienced year-over-year declines in transactions, reflecting the broader national trend of cooling in the housing market.
Breaking down the data regionally, the Northeast PHSI edged up 0.8% to 64.4, though this still represented a 6.4% drop from November 2022. The Midwest saw a modest 0.5% increase to 76.2, with a 2.2% decrease over the previous year.
In contrast, the South recorded a 2.3% decrease to 83.2, falling 6.5% from the previous year. The West showed a notable 4.2% climb in its index to 54.0, despite being 4.9% lower than the November 2022 figures.
Yun remained optimistic about the future, especially considering the recent downward trend in mortgage rates.
“With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates – home sales will improve in 2024,” he said.
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