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US pending home sales drop to snap four months of gains

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(Reuters) – The formerly owned home purchase contracts decreased in December to capture a series of four -month increases, with special declines in particular in the northeastern and western regions with high prices, as interest rates in the mortgage increased.

The National Association of Real Estate Judass (NAR) said on Thursday that the hanging house sales index, based on signed contracts, decreased by 5.5 % last month to 74.2 of 78.5 revised in November. The economists of Reuters expected the contracts, which became sales after a month or two, unchanged in December after an increase of 1.6 % in November.

Husband sales decreased by 5.0 % from the previous year. On a regional basis, signatures decreased on a monthly and annual basis in all four regions. The month of the month was a decrease of 8.1 % in the northeast and a 10.3 % slide in the West.

“After four consecutive months of gains in the signatures of the contract, one step back is not news, but it is not completely surprising,” said Lawrence Yun, Nar’s chief economist.

The firm -price mortgage rate, which lasted 30 years, increased to over 7 %, according to the Mortgage Banking Association, as it is mainly equivalent to interest rate discounts provided by the Federal Reserve since September.

The 10 -year US Treasury, which is the highest impact in determining rates on most home loans, has increased sharply since the first interest of the Federal Reserve. This happened with the increasing investor concern in the bond market about how to feed the policies that President Donald Trump prefers – such as customs tariffs, tax cuts and migration suppression – high inflation.

(Participated in the reports of Dan Burns; edited by Andrea Richie)

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