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A rush of homes go under contract in January, but it’s unlikely to last



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Saul Loeb | AFP | Getty ImagesA sharp drop in mortgage interest rates brought homebuyers out in force in January, but rates have bounced back higher again, so the gains may be short-lived.Signed contracts on existing homes jumped 8.1% last month compared with December, according to the National Association of Realtors. That’s the second straight month of gains. Sales, however, were still 24% lower compared with January 2022.The so-called “pending sales” are the most current indicator of housing demand, as it can take up to two months to close on a signed sale. Closed sales in January were lower because they were based on contracts signed in November and December, when mortgage rates were higher.And January’s jump is all about mortgage rates. After hitting a high of just over 7.3% in October, which caused sales to plummet, the average rate on t …

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