Sales of Pending Homes Jump Reaching Its Highest in 6 Years
Pending homes sales jumped to 6.7 percent, reaching a six-year high.
According to the National Association of Realtors, signed contracts to purchase homes that were owned previously increased 6.7 percent in May, up 12.1 percent from last year. This might have been the cause of the recent increase in mortgage rates; Buyers who were still thinking about buying before are now entering the market before rates get any higher.
Another factor leading to the jump is the tight inventory on markets across the nation. Demand is piling up but some markets are seeing supplies that will only last for six months.
The sales jump was highest in the West where markets also saw the greatest increase in prices.
Northeast index remain unchanged in May. In Midwest, the sales rose to 10.2 percent which were 22.2 percent higher in the same month last year. The South, in addition, experienced a 2.8 percent increase.