The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes that are signed each month. Because it measures contract signings, which precede closings by a number of weeks, it can be a good indicator of future existing-home sales. In October, the index saw a significant spike, rising 7.5 percent from the month before. Lawrence Yun, NAR’s chief economist, says it’s a sign that buyer demand remains high. “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,” Yun said. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.” Regionally, the Midwest and South saw the most activity, with the Midwest up 11.8 percent and the South rising 8 percent. (source)
