Pending home sales in the U.S. showed significant growth in November, climbing 6.9% compared to the same period last year and marking the fourth consecutive month of gains. Regionally, the Midwest, South, and West experienced monthly increases, while the Northeast saw a slight decline in contract signings. Nevertheless, all four regions posted annual gains. According to the National Association of Realtors (NAR), the Pending Home Sales Index rose 2.2% in November to 79.0 — the highest level since February 2023 — following a 1.8% increase in October. This growth outpaced economists’ predictions of a 0.9% rise and reflected strong buyer interest despite elevated borrowing costs.
The rise in contract signings aligns with a second consecutive increase in completed existing-home purchases, as previously reported by the NAR. November’s inventory of homes for sale was up nearly 18% year-over-year, providing buyers with more options and leverage in negotiations. “Consumers appear to have adjusted to the reality of mortgage rates averaging above 6% for the past two years,” said Lawrence Yun, NAR’s chief economist. “With the market moving away from a seller’s dominance, buyers are better positioned to negotiate.” Mortgage rates for 30-year fixed loans climbed to 6.85% in November, the highest since July, countering recent Federal Reserve rate cuts. Additionally, a roughly one-percentage-point increase in the 10-year U.S. Treasury yield since September — driven by concerns over inflationary policies from President-elect Donald Trump’s administration — has influenced borrowing costs.
Buyers Find Opportunities Amid Market Shifts
Despite these challenges, improved inventory levels and stabilized buyer expectations are driving renewed activity in the housing market. Signed contracts, which typically close within a month or two, signal that buyers are motivated to act in a shifting market. The latest data indicates a more balanced landscape, with opportunities for negotiation and fewer competitive bidding wars.
Freddie Mac data shows that higher mortgage rates have become the norm, prompting buyers to recalibrate their expectations rather than hold out for substantial rate reductions. This adaptability, combined with a growing selection of available homes, suggests a gradual recovery in the housing market. While affordability remains a concern, the steady rise in pending home sales offers optimism for the months ahead, reflecting resilience and strategic decision-making among today’s buyers.