(Reuters) – U.S. existing home purchase contracts beat expectations in November, rising for the fourth straight month as buyers focused on taking advantage of improved inventory even as mortgage rates remained high It became.
The National Association of Realtors (NAR) announced Monday that its index of pending home sales based on signed contracts was 79.0 last month, up 2.2% from 77.3 in October and the highest since February 2023. Economists polled by Reuters had expected the number of contracts for sale to rise 0.9% in the next one to two months, following a 1.8% rise in October.
Pending home sales increased 6.9% year over year. On a regional basis, the Midwest, South, and West saw monthly increases, while the Northeast saw a decline in contract signings. All four regions recorded annual increases.
The increase in closings in November coincided with NAR’s previously reported increase in existing home purchase completions last month for the second consecutive year. Previous reports showed the inventory of homes for sale rose nearly 18% in November compared to the same month last year.
“Consumers appear to be recalibrating their expectations regarding mortgage rates and taking advantage of more available inventory,” said NAR Chief Economist Lawrence Yun. “Over the past 24 months, mortgage rates have averaged over 6%. Buyers are no longer waiting or hoping for mortgage rates to drop significantly. Additionally, the market has shifted from a seller’s market. Buyers are in a better position to negotiate.”
In fact, according to Freddie Mac, interest rates on popular 30-year fixed-rate mortgages have risen over the past two months to 6.85%, the highest since July, effectively the lowest rate since September. The bank is said to be countering the interest rate cuts it has implemented. .
The 10-year Treasury note, which has the biggest influence on determining interest rates on most mortgages, has risen about 1 percentage point since September. The developments come as bond market investors grow increasingly concerned about how policies championed by President-elect Donald Trump, such as tariffs, tax cuts and immigration crackdowns, will contribute to higher inflation.
(Reporting by Dan Burns; Editing by Chizu Nomiyama)
