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On-the-fence buyers fearful of rising mortgage rates and rental costs pushed pending sales up 7.5%; 2021 could now break a 15-year record for housing sales.<\/span><\/span><\/p>\n<\/div>\n WASHINGTON \u2013 Pending home sales increased in October, rebounding after a decline in September, according to the National Association of Realtors\u00ae (NAR), with contract activity up month-over-month in each of the four major U.S. regions.<\/span><\/span><\/p>\n On a year-over-year basis, however, transactions were split: two regions reported drops and two others posted gains.<\/span><\/span><\/p>\n The Pending Home Sales Index (PHSI) \u2013 a forward-looking indicator of home sales based on contract signings \u2013 rose 7.5% to 125.2 in October. Year-over-year, however, signings fell 1.4%. An index of 100 is equal to the level of contract activity in 2001.<\/span><\/span><\/p>\n \u201cMotivated by fast-rising rents and the anticipated increase in mortgage rates, consumers on strong financial footing are signing contracts to purchase a home sooner rather than later,\u201d says Lawrence Yun, NAR\u2019s chief economist. \u201cThis solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.\u201d<\/span><\/span><\/p>\n The strong showing in October, \u201cassures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years,\u201d Yun adds.<\/span><\/span><\/p>\n While the market should remain robust, Yun forecasts home prices will rise at a gentler pace over the course of the next several months and expects demand to be milder as mortgage rates increase.<\/span><\/span><\/p>\n Realtor.com\u2019s Hottest Housing Markets data found three Florida metro areas in its \u201cmost improved\u201d over the past year: Orlando-Kissimmee-Sanford<\/strong>, Jacksonville<\/strong>, Tampa-St. Petersburg-Clearwater<\/strong>, Dallas-Fort Worth-Arlington in Texas and Nashville-Davidson in Tennessee.<\/span><\/span><\/p>\n Regional breakdown<\/strong>: Compared to the previous month, contract signings rose at the strongest pace in the Midwest and South regions. Month-over-month, the Northeast PHSI increased 6.9% to 99.5 in October, though it fell 10% from a year ago. In the Midwest, the index climbed 11.8% to 124.6, which is also up 5.1% year-to-year.<\/span><\/span><\/p>\n\n