According to the latest Pending Home Sales Index (PHSI) from the National Association of Realtors (NAR), pending home sales in August spiked once again, making this the fourth consecutive month of growth. The PHSI hiked up 8.8% to 132.8 in August, a record high. Signings rose 24.2% in comparison to this time last year.
“Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August,” said Lawrence Yun, NAR’s chief economist. “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. 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.”
Additionally, all four major regions saw a jump in month-over-month and year-over-year pending home sales activity. The Northeast increased 4.3% to 117.1 and is 26% higher than a year ago. The Midwest saw an 8.6% growth to 124.5, which is up 25% from August 2019. Meanwhile in the South, the index reached 154.2 for a 8.6% growth month-over-month and 23.6% increase year-over-year. Lastl, the West saw a 13.1% gain to 120.3—up 23.6% year-over-year.