Pending Home Sales Increase in September

On Friday, Redfin reported that pending home sales jumped 2.5% month-over-month in September on a seasonally adjusted basis. This is the largest increase since January 2023. Year-over-year, pending homes sales increased 3.1%, the biggest annual increase since May 2021.

Redfin identified two reasons for the increase in pending home sales: Mortgage rates fell to the lowest level in two years, giving buyers more purchasing power, and the Federal Reserve cut interest rates and outlined a plan for future rate cuts.

Overall closed home sales—including existing as well as new homes—declined 0.2% month-over-month on a seasonally adjusted basis and declined 1.6% year-over-year to the lowest level since December.

Commenting on the report, Redfin Senior Economist Elijah de la Campa said:

“September showed that there are buyers and sellers who are ready to jump into the market—when the conditions are right. Most buyers who went under contract last month did so when mortgage rates were falling and before two major hurricanes devastated much of the South. We’re closely watching October data to see whether the recent increase in rates and widespread devastation from the storms causes the market to slow back down.

My advice for buyers’ is don’t try to time the market. There are a lot of swing factors, like the upcoming jobs report and the presidential election, that could cause the housing market to take unexpected twists and turns. If you find a house you love and can afford to buy it, now’s not a bad time. Mortgage rates are still down from their peak, and buyers in some areas are able to negotiate because homes have been sitting on the market.”