Pending sales of US existing homes climbed by more than expected in November as a modest improvement in prices and mortgage rates encouraged buyers.
An index of contract signings rose 3.3% to 79.2 last month, the highest level since February 2023, according to figures released Monday by the National Association of Realtors. The gain was broad-based across regions and exceeded all but one estimate in a Bloomberg survey of economists.
"Homebuyer momentum is building," NAR Chief Economist Lawrence Yun said in a statement, citing improving affordability and more inventory choices compared to last year.
Signings have now increased for four straight months, matching a streak seen during the frenzied housing market of the pandemic.
The recent data point to the gradual improvement many economists see for the housing market into 2026. Mortgage rates that were close to 7% in May have since settled in the 6.3% to 6.4% range, and home prices are growing at a much slower rate compared to last year.
That's helped fuel small gains in contract closings in recent months. However, economists and industry experts have widely different expectations for next year. In a recent
The trade association's report on Monday showed contract signings rose in each US region last month to their highest levels of the year. The West posted the largest increase, followed by the South, the nation's largest home-selling region.
Pending-home sales tend to be a leading indicator for previously owned homes, as houses typically go under contract a month or two before they're sold.
