Why Signed Contracts on Existing Homes Are Set to Rebound

Why Signed Contracts on Existing Homes Are Set to Rebound

Pending Home Sales fell 4.6% from September to October, marking the fifth straight monthly decline. Sales were also 37% lower than they were in October of last year. This is a critical report for taking the pulse of the housing market, as it measures signed contracts on existing homes, which represent around 90% of the market.

 

What’s the bottom line? Lawrence Yun, chief economist for the National Association of Realtors, noted, “October was a difficult month for home buyers as they faced 20-year-high mortgage rates.” Yet, he added that “upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”