The Northeast, however, reflected a decline in activity. Nationally, prior to seasonal adjustment, year-over-year contract signings are up by 5.6%.
“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” said NAR chief economist Lawrence Yun. “Buyers are no longer waiting for or expecting mortgage rates to fall substantially.”
Higher level of pending sales, a leading indicator of existing home sales, aligns with other data indicating continued home purchases at higher levels of mortgage rates.
These pending sales contracts usually lead final sales by one to two months, providing insight into near-term housing market trends.
The housing market still has to grapple with the issue of affordability, considering high home prices and elevated borrowing costs.
