(Reuters) – Contracts to buy U.S. first-time homes rose more than expected in November, with a fourth straight month of gains, as buyers focused on taking advantage of improved inventory despite stubbornly high mortgage rates.
The National Association of Realtors (NAR) said Monday that its Pending Home Sales Index, based on signed contracts, rose 2.2% last month to 79.0 — the highest since February 2023 — from 77.3 in October. Economists polled by Reuters had expected contracts, which become sales after a month or two, to rise 0.9% after rising 1.8% in October.
Pending home sales rose 6.9% from a year earlier. On a regional basis, the Midwest, South and West saw monthly increases while contract signings fell in the Northeast. All four regions posted annual gains.
The increase in contract signings in November coincided with a second consecutive increase in existing home purchase completions last month previously reported by NAR. That previous report showed that the inventory of homes for sale in November was up nearly 18% from a year earlier.
“Consumers appear to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” said Lawrence Yun, the NAR’s chief economist. “Mortgage rates have averaged more than 6% for the last 24 months. Buyers are no longer waiting or waiting for mortgage rates to drop substantially. In addition, buyers are in a better position to trade as the market moves away from the seller’s market.”
Indeed, the rate on the popular 30-year fixed-rate mortgage rose in the past two months to the highest since July at 6.85%, according to Freddie Mac, essentially against the backdrop of rate cuts interest made from September by the Federal Reserve. .
The 10-year U.S. Treasury note, which is the primary influence in determining rates on most home loans, has risen by about a percentage point since September. This comes as bond market investors have grown concerned about how policies favored by President-elect Donald Trump — such as tariffs, tax cuts and immigration crackdowns — could fuel inflation. higher
(Reporting by Dan Burns; Editing by Chizu Nomiyama)
https://media.zenfs.com/en/reuters-finance.com/6921ec8d7cfa7d235200aa7a16e903d4
2024-12-30 15:05:00
