Photo: AFP/Frederic J Brown
Photo: AFP/Frederic J Brown

Pending home sales were negative year-on-year as well as month-on-month in August.

Pending home sales vs 30-year mortgage

The housing market appears very sensitive to changes in the 30-year mortgage rate, which in turn suggests that US households don’t have a great deal of leeway in affording major purchases.

As we reported last month, US consumers are borrowing more on their credit cards and buying more, but are reducing investment in homes. Not exactly a robust picture.