The data released on Monday (December 30) shows that the number of signed home purchasing contracts in the United States saw a significant increase in November, surpassing expectations from the outside and achieving growth for the fourth consecutive month. Analysts believe that this demonstrates that despite the persistently high mortgage rates, buyers are taking advantage of increased housing supply to make purchases.
The National Association of Realtors (NAR) stated that the Pending Home Sales Index (PHSI) for November, which tracks signed contracts awaiting closing, increased by 2.2% last month, reaching 79.0, the highest level since February 2023, and up from 77.3 in October this year.
The number of homes under contract in November increased by 6.9% compared to the same period last year.
Regionally, in November this year, there was an increase in monthly contract signings in the Midwest, South, and West regions of the United States, while the Northeast region saw a decrease in contract signings. Annual contract signings increased in all four of these regions.
A previous report by NAR mentioned that the number of completed resale home signings in November increased for the second consecutive month, and the latest data released aligns with this trend. The report also indicated that the inventory of homes for sale in November increased by nearly 18% compared to the same period last year.
Lawrence Yun, Chief Economist of NAR, stated: “Consumers seem to have readjusted their expectations for mortgage rates and are taking full advantage of the increased housing supply. Over the past 24 months, mortgage rates have averaged over 6%. Buyers are no longer waiting for or expecting a significant drop in mortgage rates. Additionally, as the market gradually shifts to a buyer’s market, buyers are in a more advantageous position during negotiations.”
Statistics show that current mortgage rates in the United States remain high and have slightly increased over the past few months.
According to data from Freddie Mac, a popular 30-year fixed-rate mortgage has climbed to 6.85% in the past two months, the highest level since July, essentially offsetting the rate cuts implemented by the Federal Reserve since September.
The 10-year U.S. Treasury bond yield, which affects most mortgage rates, has risen by approximately one percentage point since September.
(Translated with reference to a report by Reuters)