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.