The National Association of Realtors’ Pending Home Sales Index was flat in September after hitting its strongest pace of the year the month before. The index, which measures contract signings – not closings, is considered a good future indicator of existing-home sales since contract signings precede closings by several weeks. Lawrence Yun, NAR’s chief economist, says conditions are improving. “Inventory has climbed to a five-year high, giving home buyers more options and room for price negotiation,” Yun said. “Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity.” As it is, pending sales are now just 0.9 percent below year-before levels. Contract signings saw the biggest gains in the South and Northeast, while the West was virtually unchanged month-over-month and the Midwest saw a 3.4 percent decline from the month before. (source)
