America’s relatively low mortgage rates spurred another increase in pending home sales in September, as the index rose 1.5%, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased to 108.7 in September, rising from August’s 107.3.
Contract signings compared to a year earlier increased 1.5% from last month’s increase, but jumped 3.9% from 2018, NAR said.
Lawrence Yun, NAR’s chief economist, said historically low mortgage rates played a significant role in the two straight months of gains.
“Even though home prices are rising faster than income, national buying power has increased by 6% because of better interest rates,” Yun said. “Furthermore, we’ve seen increased foot traffic as more buyers are evidently eager searching to become homeowners.” [read full article on Housingwire.com]