The National Association of Realtors’ Pending Home Sales Index dropped 4.4 percent to a reading of 106.2 for the month, but contract signings jumped 51.7 percent year-over-year. “Contract signings are approaching pre-pandemic levels after the big surge due to the lack of sufficient supply of affordable homes,” said Lawrence Yun, NAR’s chief economist, today. All regions except the Midwest saw a month-over-month drop. In the Midwest, the index increased 3.5 percent to 101.1 which is up more than 39 percent compared to the same period a year ago.
“Some buyers from the expensive cities in the West and Northeast, who have the flexibility to move and work from anywhere, could be opting for a larger-sized home at a lower price in the Midwest,” Yun noted. Recent housing data shows the red hot market may be cooling a bit. Mortgage applications fell 4.2 percent, reports the Mortgage Bankers Association in its weekly survey. Interest in refinancing fell as well by seven percent compared to the prior week. And, yesterday the average rate for a 30-year fixed mortgage to 2.95 percent, down from last week’s average of 3 percent, according to Freddie Mac.