MNI BRIEF: US Nov Existing Home Sales Fall More Than Expected

U.S. existing home sales fell for a tenth straight month in November by 7.7% to a 4.09 million seasonally adjusted annual rate, the National Association of Realtors said Wednesday, a larger drop than Wall Street had expected.

Sales are down 35.4% from a year ago and are the lowest since May 2020 or November 2010 before the pandemic.

Real estate is "clearly in recession," but the market could begin to recover by spring, NAR chief economist Lawrence Yun said on a call with reporters. He forecasts mortgage rates to dip to around 5.5% by spring or summer as the Fed nears the end of its rate-hike campaign, capping gains on the 10-year Treasury rate.

Nearly a quarter of homes were still sold above list price in November due to limited inventory, Yun said. All-cash sales remained elevated at 26% of all transactions, though investors comprised only 14% of buyers in the month.