Signed contracts on existing homes increased during October despite rising mortgage rates, and the number of closed sales also rose, according to CNBC. Pending sales jumped 7.5% from September though year-over-year rates are still down from 2020.
Low housing inventory continues to leave few options on the market for prospective buyers, but a surge in home sales for the month of October suggests a strong year for the housing market after last year’s jump at the start of the pandemic.
“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” said Lawrence Yun, NAR’s chief economist. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”
Sales were strongest in the Midwest and South regions, rising 11.8% and 8.0% month to month, respectively.
In the Northeast, pending sales rose 6.9% month to month, and in the West they increased 2.1%.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
Sales + Marketing
New-Home Sales and Navigating the 3 D’s: Death, Divorce, and Downsizing
Here’s how home sales experts manage challenging lifestyle changes with and for their buyers
