Pending home sales in October increased significantly and remain above levels from last year. The National Association of Realtors is optimistic for the future, based on the Pending Home Sales Index, which reflects contracts but not closings.
The index rose 10.4 percent, reaching 93.3 in October, up from 84.5 in September. This month's numbers are higher than last year's 85.5
While contracts are up, NAR urges potential homebuyers to be aware of credit scores that may hinder their chances of getting a mortgage, but a spokesperson hopes that the increase in contract activity is an indication that buyers are beginning to take advantage of record low interest rates.
"Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows," Lawrence Yun, NAR chief economist, said. "There is a pent-up demand from buyers who normally would have entered the market in recent years."