WASHINGTON (AP) – More Americans signed contracts to buy homes in September, a sign that the housing market is still benefiting from lower mortgage rates.
The National Association of Realtors says its pending home sales index rose 1.5% from August to September to 108.7, its highest level since December 2017. Measured year over year, pending home sales have surged 3.9%.
Home buying has grown more affordable thanks to steadily dropping mortgage rates. The average interest rate on a 30-year fixed-rate mortgage is 3.75, according to Freddie Mac. That’s down almost a full percentage point from November 2018.
Still, economists say surging home prices could slow sales once mortgage rates stabilize.
Pending sales are a measure of home purchases that are usually completed a month or two later.
