The numbers: U.S. pending-home sales fell in May, the National Association of Realtors said on Thursday but the housing market is still showing signs of being in recovery mode.
Demand for homes is still strong, despite mortgage rates hovering near 7%, but buyers are finding few properties for-sale to choose from as homeowners hold out on selling. The figure fell short of expectations on Wall Street. Economists expected pending home sales to be flat in May. Considerable pent-up demand for homes from buyers who have accepted the new normal of high interest rates, combined with homeowners’ reluctance to sell their home and give up their rare pandemic-era ultra-low mortgage rate has led to an imbalance in demand and supply.
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