Pending home sales in the U.S. have risen for more than four years

(Reuters) – U.S. pre-owned home contracts rose to a more than four-year high in September, driven by more attractive interest rates and an improved inventory of properties for sale.

The National Association of Realtors (NAR) reported on Wednesday (30) that its index of pending home sales, based on signed contracts, rose 7.4% last month to 75.8.

Economists consulted through Reuters Contracts for sale a month or two later forecast a 1.0% rise, after rising 0.6% in August from July’s low.

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September’s monthly increase was the largest since a 14.9% gain in June 2020, while on a year-over-year basis, the national rate of sales rose 2.6% – the biggest improvement since May 2021.

“As buyers took advantage of a combination of low mortgage rates and more inventory options in late summer, contract signings increased in every region of the country,” said Lawrence Yun, chief economist for the brokers association.

“Further gains are expected if the economy continues to create jobs, inventory levels grow and mortgage rates remain stable.”

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The 30-year fixed mortgage rate was above 6% at the end of September and the lowest in more than two years, which helped boost contract signings last month. However, since then, it has risen by more than half a point, reaching its highest value since late July.