The National Association of Realtors tracks how many contracts to buy homes are signed each month with its Pending Home Sales report. The monthly gauge is considered a good future indicator for existing-home sales numbers, as contract signings generally precede closings by several weeks. In August, the NAR found the number of signed contracts to buy homes up 0.3 percent from the month before, though they were still 4.7 percent lower than last year at the same time. Dr. Lawrence Yun, NAR’s chief economist, says buyers were active despite higher rates in August. “Buyers steadily entered into contracts in August even though mortgage rates increased,” Yun said. “However, the housing market is still sluggish, with contract signings below last year. This is due to higher mortgage rates offsetting the increased buying power created by job gains and income growth outpacing home price growth.” (source)
