Pending home sales increased 6.1% in March to 76.5 on the National Association of Realtors Pending Home Sales Index, the greatest month-to-month increase since December 2023.
Compared with March 2024, pending home sales decreased by 0.6%.
On a regional month-over-month breakdown, the Northeast PHSI decreased 0.5%, the Midwest increased 4.9%, the South increased 9.8% and the West increased 4.8%.
“Home buyers are acutely sensitive to even minor fluctuations in mortgage rates,” NAR Chief Economist Lawrence Yun said in a statement. “While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth.”
Mortgage rates fell by around 20 to 30 basis points in March. The average mortgage rate was 6.65% in March, down from 6.96% in January and 6.84% in February.
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