Despite strong buyer interest, continuing inventory shortages led to a dip in closed sales in February. NAR Chief Economist Lawrence Yun says higher interest rates are also putting pressure on some would-be buyers. In a positive sign going into summer, NAR’s forward-looking pending home sales index showed contract signings moving higher in February.
Smoother Financing
The percentage of transactions delayed because of financing problems has steadily improved over the last two years, suggesting buyers are finding mortgage loans easier to close.
Financing-related snags remain the top transaction problem, accounting for 30 percent of all delays. Appraisal issues, at 22 percent, are the next biggest reported holdup.
Source: NAR Research