Pending sales of US homes increased for a fourth month in November as homebuyers took advantage of falling mortgage rates…

Source: Bloomberg

That lifted the total pending home sales index to its highest since early 2023…

Source: Bloomberg

A National Association of Realtors measure of contract signings rose 2.2% to 79, the highest since February 2023. The median estimate in a Bloomberg survey of economists called for a 0.8% increase.

“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” NAR Chief Economist Lawrence Yun said in a statement.

“Buyers are no longer waiting for or expecting mortgage rates to fall substantially.”

We shall see, Larry!

Pending sales were led by a 5.2% monthly increase in the South, with smaller advances in the West and Midwest. Activity declined in the Northeast.

But, given the lags in the home-buying process, we suspect this hope-filled rebound in home sales will be very short-lived…

Source: Bloomberg

…and don’t believe that more Fed cuts will help…

Source: Bloomberg

The Fed is cornered.