U.S. pending home sales ticked up in September despite mortgage rates surging over 7%.
In a surprise move, pending home sales rose 1.1% in September from August, according to a report released Thursday by the National Association of REALTORS®. Pending sales were down 11% from a year ago.
The Northeast, Midwest, and South saw monthly gains in transactions while the West experienced a loss. All four U.S. regions had year-over-year declines in transactions.
Pending sales had seen slight increases in June and July, despite elevated prices and higher mortgage rates. But mortgage rates topping 7% in August snapped that streak, and pending sales dropped 7% from July to August. September saw pending sales tick back up again.
“Despite the slight gain, pending contracts remain at historically low levels due to the highest mortgage rates in 20 years,” said Lawrence Yun, chief economist at the National Association of REALTORS®. “Furthermore, inventory remains tight, which hinders sales but keeps home prices elevated.”