Contract signings for pending homes sales inched upward in September according to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI). Increasing by 0.3% from the previous month, and 1% compared to the same time a year ago, September’s PHSI was “above 100 for the fifth consecutive month and…at the second-highest level since last September.”
Based on current inventory levels and the moderation of home price appreciation, Lawrence Yun, NAR Chief Economist, indicated that the conditions were favorable for buyers. Yun stated, “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.”
While tightened lending conditions have been reported to be inhibiting home sales, Yun stated that the “final rule on Qualified Residential Mortgages should improve access to credit once it goes into effect next year.” Read more at http://bit.ly/1wKIpwL.