Milwaukee, Wisconsin 2020-12-30 10:45:55 –
Silver Spring, Maryland (AP) —The number of Americans signing home purchases declined last month, but remained at record highs in November, when the real estate market typically sees a seasonal slowdown.
The National Association of Real Estate Agents said Wednesday that the pending sales index fell 2.6% to 125.7, down from the revised reading of 129.1 in October. Index 100 represents the level of contract activity in 2001. This was the third consecutive month of decline.
The signing of the deal is a barometer of purchases completed in the next two months, so Wednesday’s report may preview what could be a strong winter for the housing market.
Contract signing is still 16.4% ahead of last year, thanks to a large summer rebound following a spring washout due to the coronavirus outbreak.Signed contracts in all four regions, northeast and south
Midwest and West — Decreased from October to November, but increased by double digits year-on-year until last month.
While historically low interest rates have attracted future buyers to the market, home prices have risen sharply last year as supply remains close to record lows.
According to the S & P Core Logic Case-Shiller 20 City Home Price Index released on Tuesday, US home prices rose 7.9% in October, the highest in June 2014.
Mortgage giant Freddie Mac reported last week that the average interest rate on 30-year fixed-rate mortgages was at a record low of 2.66%.