Housing Hopes

Existing home sales fell 1.5% M-o-M in December, the 11th straight monthly decline, and declined to a seasonally adjusted annual rate of just 4.02 million. Y-o-Y sales fell 17.8% Y-o-Y to 5.03 million. Fortunately, the sales decline is likely over. December’s decline was small and reflected contracts signed in October and November when rates were 7%. With rates now lower, sales should perk up. December pending sales rose 2.5% M-o-M.