The U.S. housing sector is on a roll, with an increasing number of Americans leveraging on the record-low mortgage rates. The latest pending home sales data for August reached the highest level on record as more Americans signed contracts to buy homes in the month, suggesting that the hot U.S. housing market will maintain the strong spell well into fall.
All-Time High Pending Home Sales
The National Association of Realtors or NAR’s Pending Home Sales Index — a forward looking indicator of home sales based on contact signing — soared 8.8% from July to 132.8 in August, hitting a record high, according to the NAR survey since January 2001. Contract signings are 24.2% higher from the year-ago period as well.
It is worth mentioning that August marks the fourth consecutive month of gains as well as the third year-over-year rise since the pandemic hit the housing market hard. All four major U.S. regions notched growth in August, with the West seeing the biggest improvement.
Apart from record pending home sales numbers, there were a couple of indicators showing continued strength in the housing market. Last week, the NAR released data that showed that sales of existing homes rose 2.4% in August from July to its highest level since 2006. Sales were up 10.5% from a year ago and back to pre-COVID-19 levels of early 2020. Also, the Commerce Department’s new home sales increased 4.8% in August from July and a remarkable 43% from August 2019.
Meanwhile, the NAR Housing Market Recovery Index indicated that the greatest recoveries have been recorded in the Seattle, Las Vegas, Boston, Denver and Philadelphia areas.
“Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August,” said Lawrence Yun, NAR’s chief economist. The average U.S. mortgage rate for a