Pending home sales saw a surprising 7.4% increase in September compared to August, according to the National Association of Realtors. This surge in signed contracts marks the highest level of pending sales since March and a 2.6% rise from the same month last year. The increase is attributed to a slight decline in mortgage rates, which averaged 6.11% in September before rising again in October. Lawrence Yun, the chief economist for the Realtors, noted that buyers were motivated by lower rates and more available inventory. Regionally, the West experienced the largest gains, reflecting the sensitivity of buyers to mortgage rates, especially in areas with higher home prices. Despite the positive trend, experts warn that the recent uptick in pending sales may be short-lived due to rising mortgage rates, which are now above 7%. Overall, while mortgage demand has increased year-over-year, it remains historically low, raising concerns about the sustainability of this market rebound.
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