Despite disappointing slowdowns in sales of new- and existing-homes, pending home sales were expected to show a small positive gain in September but surprised with a 1.5% MoM pop (0.9% exp).
This is the strongest pending home sales index since Dec 2017...
The National Association of Realtors’ Index of pending home sales increased 6.3% in September from a year earlier on an unadjusted basis, the biggest gain since August 2015
“Even though home prices are rising faster than income, national buying power has increased” with lower interest rates, Lawrence Yun, NAR’s chief economist, said in a statement.
“But home prices are rising too fast because of insufficient inventory.”
The monthly gains in contracts were concentrated in the Midwest and South, while the West and Northeast recorded declines.