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%.