Pending Home Sales Increase 8.8% in August – New Record High

The National Association of Realtors® (NAR) is reporting that their Pending Homes Sales Index (PHSI), which is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops, increased 8.8% in August to a reading of 132.8 – a record high. An index of 100 is equal to the level of contract activity in 2001.This marks the fourth consecutive month of growth. Year-over-year contract signings rose 24.2%. In a prepared statement, Lawrence Yun, NAR’s chief economist said, Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August. “Additionally, the Fed intends to hold short-term fed funds rates near 0% for the foreseeable future, which should in the absence of inflationary pressure keep mortgage rates low, and that will undoubtably aid homebuyers continuing to enter the marketplace.”