Pending home sales drop to a record low, even worse than during the financial crisis

The National Association of Realtors (NAR) reported that pending home sales in the U.S. dropped to a record low in April. The index of pending home sales decreased by 20.8% from March to a seasonally adjusted reading of 68.9, worse than even the depths of the financial crisis, when it registered at 71.3 in February 2008. The report noted that the decrease was due to financial hardships many Americans face due to the coronavirus pandemic, especially the loss of jobs and income, resulting in a decreased ability and willingness to purchase a home. The index was also 19.8% lower than its reading in April of last year.