US pending home sales rise 1.1% in September

By Ovunc Kutlu

ISTANBUL (AA) - US pending home sales rose 1.1% in September from the previous month, according to data released Thursday by the National Association of Realtors (NAR).

The market anticipated a 1.8% decline in sales, while the figure in August indicated a decrease of 7.1%.

Pending home sales in September were down 11%, compared to the same month last year.

"Despite the slight gain, pending contracts remain at historically low levels due to the highest mortgage rates in 20 years," said Lawrence Yun, the association’s chief economist. "Furthermore, inventory remains tight, which hinders sales but keeps home prices elevated."

The pending home sales index, which is a forward-looking indicator of home sales based on contract signings, rose 1.1% to 72.6 points in September.

NAR said it expects existing home sales to decrease 17.5% in 2023, settling at 4.15 million, before rising 13.5% to 4.71 million in 2024.

It forecasts the 30-year fixed mortgage rate to average 6.9% this year and then decline to an average of 6.3% in 2024, while it estimates the unemployment rate falling to 3.7% in 2023 before increasing to 4.1% in 2024.

Pending home sales measure the change in the number of houses under contract to be sold but still awaiting transaction. It excludes new home construction.

It is considered a forward-looking indicator of home sales based on contract signings.