Pending Home Sales, which are signed contracts on existing homes, rose 0.6% from July to August, per the National Association of REALTORS® (NAR), rebounding from their lowest level this year. However, sales remain 3% lower than they were a year earlier.
What’s the bottom line? Signed contracts on existing homes are starting to pick up, but we have not yet seen the full impact of lower rates on contract activity, as it takes time for people to find a home, negotiate and eventually sign a contract. NAR’s Chief Economist, Lawrence Yun, added that the slight move higher in activity “reflects a modest improvement in housing affordability.”