In September, signed contracts to purchase existing homes saw an unexpected surge of 7.4% from August, as reported by the National Association of Realtors. This increase far exceeded the anticipated 1% rise and marked the highest level of pending sales since March, as well as a 2.6% increase from the same time last year. Pending sales, which reflect current buyer demand, show the impact of mortgage rates on consumer behavior. Throughout August, the average rate for a 30-year fixed mortgage decreased, reaching a low of 6.11% by mid-September, though it later climbed past 7% in October. Lawrence Yun, the Realtors’ chief economist, attributed this rise in contract signings across all regions to lower mortgage rates and increased inventory. Gains were particularly notable in the West, where lower rates offer the most significant benefit due to high home prices. Despite rising rates affecting affordability once more, mortgage demand saw a 10% year-on-year increase last week, according to the Mortgage Bankers Association. However, Selma Hepp, CoreLogic’s chief economist, warned that the rebound in pending sales is likely temporary and insufficient to boost 2024 home sales above 2023 levels, as rates climb back up to 7%.
Original Story https://www.cnbc.com/2024/10/30/pending-home-sales-september.html
Category :
Tags:
