Pending home sales index has continued to rise for the fourth consecutive month, continuing the trend. This increase has pushed the index to a record high of 132.8. Also, the year-over-year contract signings have also made a dramatic increase of 24.2% despite the impact the coronavirus had on the market.
Lawrence Yun, NAR’s chief economist, stated, “While I did very much expect the housing sector to be stable during the pandemic-induced economic shutdowns, I am pleasantly surprised to see the industry bounce back so strongly and so quickly.” He believes that the low mortgage rates and the Fed holding short-term fed funds near 0% have had a direct impact on the prosperity of the housing market.
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Pending Home Sales Index Reaches Record High as Sales Ascend 8.8% in August. (2020, September 30). Retrieved October 06, 2020, from https://www.nar.realtor/newsroom/pending-home-sales-index-reaches-record-high-as-sales-ascend-8-8-in-august