The National Association of Realtors is reporting that pending home sales increased 1.5% in September, which they attribute to historically low mortgage rates playing a significant role in marking two straight months of gains. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) increased to 108.7 in September, up 1.5% from August. In addition, they reported that year-over-year contract signings were up 3.9%.
“Even though home prices are rising faster than income, national buying power has increased by 6% because of better interest rates,” he said. “Furthermore, we’ve seen increased foot traffic as more buyers are evidently eager searching to become homeowners.” Said Lawrence Yun, the NAR’s chief economist.