Pending Home Sales Closed Out 2014 with Largest Drop of the Year

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According to Mortgage News Daily, the National Association of Relators revealed on Thursday that the rate at which contracts were signed to purchase homes in December was down 3.7 percent from November. It was also the largest drop since December 2013, when it fell 5.8 percent.

“Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country,” explained Lawrence Yun, NAR chief economist. “With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up.”

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