Pending Home Sales See Notable Growth

According to the latest data from the National Association of Realtors (NAR), pending home sales rose 4 percent in August compared to July. This key indicator tracks signed purchase contracts for existing homes and typically reflects where the housing market is headed in the coming months.

Year-over-year, pending sales are up 3.8 percent, pointing to broader momentum.

“Lower mortgage rates are enabling more homebuyers to go under contract,”said NAR Chief Economist Lawrence Yun.

Mortgage Rates Drive Buyer Activity

The average rate on a 30-year fixed mortgage fell from 6.75 percent in mid-July to 6.26 percent by mid-September, according to Freddie Mac. That nearly half-point decline helped tip the affordability scale for many buyers and sparked renewed interest in the market.

This modest but meaningful drop in rates has been enough to:

• Increase buyer confidence

• Improve monthly payment potential

• Prompt more people to submit purchase applications

Regional Breakdown: Midwest Leads the Way

Not all regions are experiencing the rebound equally. Here’s a quick look at how pending sales shifted from July to August:

• Midwest: Up 8.7 percent

• West: Up 5 percent

• South: Up 3.1 percent

• Northeast: Down 1.1 percent

The Midwest’s relative affordability has been a major factor in its surge, especially when combined with slightly improved mortgage rates.

“The Midwest led the way, offering relative affordability that helps make the payment-to-paycheck calculation work for many buyers,” said Odeta Kushi, Deputy Chief Economist at First American.

Mortgage Applications Are Also Trending Up

Beyond contract signings, purchase mortgage applications are on the rise as well. According to the Mortgage Bankers Association, applications to buy a home increased 18 percent year-over-year in the week ending September 19.

This uptick suggests that buyer interest may continue building into the fall season, especially if rates stay stable or improve further.

What This Means for Buyers, Sellers, and Agents

• Homebuyers may see slightly more favorable conditions this fall, especially those in markets with increased inventory and stable pricing.

• Sellers can expect more foot traffic and competition among motivated buyers.

• Agents should be prepared for a more active season and make sure their buyers are partnered with a lender who can move quickly.

At Premier Plus Lending, we specialize in delivering reliable pre-approvals, custom mortgage solutions, and the kind of responsive service that helps your offer stand out in a competitive market.

The Bottom Line

Mortgage rates may not be back to pandemic-era lows, but recent improvements are already making a difference. For those waiting on the sidelines, this could be the window to make a move.

Let our elite team at Premier Plus Lending help you navigate your next step with clarity, confidence, and customized financing.