Recent data shows that buyers entering into contracts to purchase homes in the United States showed significant decline for the month of November.
The drop in pending sales far exceeded expected rates previously forecasted for weeks as 2022 came to a close.
That data showed that the number of buyers signing contracts for previously-owned U.S. homes slumped for the sixth consecutive month, according toreports.
It was a clear signal that months of significant interest rate hikes prompted by the U.S. Federal Reserve's fight against red hot inflation has shown that the central bank can reduce demand in the country's housing market.
As investment publication Morning Star reported, pending home sales have dropped by the highest rate since last November in the U.S. West, at a rate of 45.7%.
Data showed that pending home sales fell in all four of the country's major regions.