US pending home sales suffer largest drop in three years

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US pending home sales suffer largest drop in three years
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- Contract signings for U.S. home purchases fell by the most in three years in April and the overall level of activity was the lowest since the onset of the COVID-19 pandemic in the spring of 2020, as high interest rates keep a lid on the housing market, the National Association of Realtors said on Thursday.The NAR said its pending home sales index fell 7.7% in April to 72.3 from an upwardly revised 78.3 reading in March.

The Fed has raised interest rates by 5.25 percentage points since March 2020 to combat inflation. Rates have been on hold since last July and the year began with expectations for as many as three quarter-percentage-point rate cuts this year, but stiffer-than-expected inflation to start the year has changed the Fed's tone. Bond market pricing now reflects the likelihood of no more than two rate cuts this year.

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