US pending home sales edge lower in November

US pending home sales fell in November, according to data released on Wednesday by the National Association of Realtors.

The NAR’s monthly index came in at 125.7, down 2.6% on the month and falling for the third month in a row. Analysts were expecting the index to be unchanged. Year-over-year, contract signings rose 16.4%.

NAR chief economist Lawrence Yun said: "The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices. It is important to keep in mind that the current sales and prices are far stronger than a year ago.

"The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates."

For 2021, Yun predicted a slight rise in mortgage rates to around 3% from the current 2.7% rate. Existing-home sales are expected to increase roughly 10% and new home sales by 20% next year, he said.