The U.S. pending home sales index for January unexpectedly dropped by 4.9%, marking the largest decline

According to a report by Jin10, the National Association of Realtors (NAR) in the United States unexpectedly saw a 4.9% decline in the January existing home sales index to 74.3, marking the largest drop in five months. The reason for this is that rising mortgage rates have dampened housing demand. In December last year, this index had surged to an eight-month high. Lawrence Yun, Chief Economist of NAR, stated that consumers have shown extra sensitivity to changes in mortgage rates during this current cycle, which has impacted home sales. In recent weeks, expectations of sustained high rates have increased housing financing costs. Earlier this week, an index measuring U.S. housing mortgage applications fell for the fifth consecutive week, nearing its lowest level since 1995.