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Signed contracts to buy existing homes in September jumped a surprising 7.4% compared with August, according to the National Association of Realtors®.
These so-called pending sales were at the highest level since March and 2.6% higher than September of last year.
Since pending sales are based on signed contracts, representing people out shopping during the month, it is the most current indicator of buyer demand. It also shows just how sensitive today’s buyers are to mortgage rates.
“Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” said Lawrence Yun, chief economist for the Realtors®, in a release. “Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady.”