(NAR) Pending home sales in the US increased by 7.5% in October from the previous month, with the index hitting 125.2.
The contract signings in October were still 1.4% below last year.
The Midwest and South had the strongest gains in pending home sales, although all regions posted increases.
NAR’s chief economist Lawrence Yun says the rise in monthly contract signings was fueled by fast increasing rents and expectations of an uptick in mortgage rates.
Yun says the robust contract signing activity in October means that existing home sales could surpass 6 million in 2021, becoming the most performing period in 15 years.
The NAR’s chief economist expects home prices to rise gently in the next several months, while demand will be mild.
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