The number of signed contracts to buy homes rose 4 percent month-over-month in August, according to new numbers from the National Association of Realtors. The increase pushed pending home sales 3.8 percent higher than they were last year at the same time and included a nearly 9 percent increase in the Midwest and a 5 percent bump in the West. Lawrence Yun, NAR’s chief economist, says lower mortgage rates are driving buyer interest. “Lower mortgage rates are enabling more home buyers to go under contract,” Yun said. “In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions.” While the Midwest leads the list, all regions are up from last year’s level, and a recent survey of realtors found a rising number believe buyer traffic will continue to climb over the upcoming months. In other words, home buyers are beginning to return to the market now that mortgage rates are moderating and the number of available homes has rebounded. (source)
