Pending Home Sales Increased in October Despite High Mortgage Rates

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%.

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