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GBP/USD is having a difficult time gathering recovery momentum and trading in negative territory below 1.2400 on Friday. Although the data from the US showed that PCE inflation continued to soften in December, the US Dollar holds its ground heading into the weekend.
Read More The United States experienced a dramatic drop in pending home sales in December, with a year-over-year decrease of 33.8%. This figure is down 37.8% from the same month a year ago, according to the National Association of Realtors (NAR).
The NAR reported that pending home sales fell by 2.2% to reach an index of 85.5 in December. This was a 10.3% drop from the previous month, and the lowest reading since April 2020.
The NAR noted that a lack of supply, along with rising prices in the housing market, contributed to the decline in sales. Inventories of homes for sale have fallen for 33 consecutive months and are now at their lowest levels since 2010. This lack of available homes is driving up prices, making it difficult for some potential buyers to find housing in their budget.
The significant decrease in pending sales may be a sign of a potential slowdown in the housing market. Low inventory and rising prices could scare off potential home buyers, further dampening the market.
However, the NAR has urged potential buyers not to be discouraged. Many potential buyers may still find their ideal homes and take advantage of attractive mortgage interest rates. The NAR believes that the market will eventually rebound, as long as buyer confidence remains strong.
In conclusion, although the pending home sales data in December was disappointing, the long-term outlook for the market is still positive. While buyers may face some challenges in the short term, they should remain confident that they can still find affordable housing and take advantage of attractive mortgage rates in the future.