Pending home sales were on the rise last month, according to new data from the National Association of Realtors (NAR).
The Pending Home Sales Index (PHSI), NAR’s forward-looking indicator of home sales based on contract signings, soared by 7.4% to 75.8 in September, the highest level since the 78.3 level recorded in March; an index of 100 is equal to the level of contract activity in 2001. Year-over-year, pending transactions were up by 2.6%.
All four major regions experienced month-over-month gains in transactions while the Northeast and West registered year-over-year increases as sales remained steady in the Midwest and South.
“Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” said NAR Chief Economist Lawrence Yun. “Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady.”
Yun also predicted slower home price appreciation and corresponding increases in sales over the next two years, with the median existing-home price rising to $410,700 in 2025 and $420,000 in 2026. The annual 30-year fixed mortgage rate will slide to 5.9% in 2025 but then move higher to 6.1% in 2026, Yun added, while forecasting 4.47 million existing-home sales in 2025 and over 5 million in 2026.
;
