Pending home sales were identical to last month, but buying interest remains high
According to the numbers released by the National Association of Realtors® (NAR), pending home sales has seen no movement in November.
NAR chief economist, Lawrence Yun, states "Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings,". As homebuying interest remains high and mortgage rates are on a slight decline, we hope to see an increase come next month or early 2024.
Wondering how the current mortgage rate may affect your own homebuying interest? Visit our mortgage calculator to break the numbers down for you in minutes.
No change November
NAR’s Pending Home Sales Index is a forward-looking tool to indicate the number of home sales based on contract signing. An index measurement of 100 corresponds to the activity level seen in 2001. With November staying at 71.6, in relation to October’s 71.4, we see minimal movement on the pending home sales scale. We continue to see pending transactions down by 5.2% year over year, compared to October at 8.5%. This is continuing a positive trend, still showing optimism on hitting the bottom of the current cycle we have been experiencing.
Here’s the breakdown of each region:
- Northeast: up 0.8% to 64.4, down 6.4% from November 2022
- Midwest: up 0.5% to 76.2, down 2.2% from November 2022
- South: down 2.3% to 83.2, down 6.5% from November 2022
- West: up 4.2% to 54.0, down 4.9% from November 2022
"With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates” Yun added. “Home sales will improve in 2024”.
We hope with that positive predication and mortgage rates continuing to lower, the market in 2024 will be a bit easier for both buyers and sellers.
Working with a local loan officer can help you access your current options and make the most out of your homebuying journey.
Source: https://www.nar.realtor/newsroom/pending-home-sales-recorded-no-change-in-november
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