Pending Home Sales Show Another Gain
Pending Home Sales Show another Gain
For the second consecutive month, pending home sales have increased. The Pending Home Sales Index, a leading indicator of housing activity released by the National Association of Realtors (NAR) each month, rose 4.3 percent based on contracts signed in August. The index, which reflects signed contracts and not closings, rose from 78.9 percent in July to 82.3 percent in August.
The increase is consistent with a gradual improvement in home sales according to NAR. Appealing affordability from these historically low mortgage rates seems to be brining buyers back into the market. Of course, the rate of recovery in the housing market still depends a lot on job creation and a rise in consumer confidence.
Current low consumer price inflation has helped keep these attractive mortgage rates, but a sudden rise in mortgage rates could slow the recovery, which simply reiterates the fact that now is the time to buy.