Home sales poised to hit 15-year high
The housing boom marches on as Americans rush to enter into contracts on new homes, according to fresh data out Monday from the National Association of Realtors.
The big picture: Contract signings increased 7.5% in October from September, representing a month-over-month increase in all regions, according to NAR’s Pending Home Sales Index.
Yes, but: Signings were 1.4% lower versus a year ago.
What they’re saying: "Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later," Lawrence Yun, NAR's chief economist, said in a statement.
- "The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years."
What we're watching: Yun expects home prices to rise more slowly and overall demand to cool off a bit as mortgage rates increase.