Pending Home Sales Post Small September Gain

The September reading marks the first time in 11 months that the index has risen above the year-ago level. The index is above 100 for the fifth consecutive month and is at the second-highest level since last September.

The NAR’s chief economist noted:

Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year. Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.

Whether or not mortgage rates are currently “spectacularly low” is a matter of interpretation. They have moved down steadily and are now bouncing right around 4%.

Pending home sales in the northeast United States increased 1.2% in September, posting an index reading of 87.5, but up 2.9% from September 2013. The index fell 1.2% in the Midwest and is 4% below last year’s reading. Pending sales rose 1.4% in the South, up 1.7% compared with a year ago, and slipped 0.8% in the West, but remains 3.6% above year-ago sales.

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