US pending home sales jump 7.4% to highest since March

Buyers took advantage of combination of lower mortgage rates in late summer, more inventory choices, says economist

By Ovunc Kutlu

ISTANBUL (AA) - US pending home sales jumped 7.4% in September, according to data released Wednesday by the National Association of Realtors (NAR).

The pending home sales index, which is a forward-looking indicator of home sales based on contract signings, climbed to 75.8 in September – the highest level since March when it was 78.3.

The figure came in much higher than market expectations of a 1.9% increase, following an increase of 0.6% in August.

Pending home sales during the month of September increased in all US regions on a monthly basis, the NAR said in its statement.

"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 Lawrence Yun, the NAR’s chief economist.

"Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady," he added.

Pending transactions, meanwhile, were up 2.6%, compared to the same month last year.

Kaynak: