Pending Home Sales Rebound In November

Associated Press
December 30, 2019 - 9:05 am

FILE - This June 13, 2019, photo shows a house with a "sold pending" sign fixed on the realtor's sign in northeast Jackson, Miss. On Monday, Dec. 30, the National Association of Realtors releases its November report on pending home sales, which are seen as a barometer of future purchases. (AP Photo/Rogelio V. Solis, File)

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WASHINGTON (AP) — Americans signed more contracts to purchase homes in November, bouncing back from last month's decline, indicating that the housing market is still strong.

The National Association of Realtors said Monday that its pending home sales index, which measures the numbers of purchase contracts signed, rose 1.2% last month, to 108.5. The trade association said that contract signings measured year over year are up a robust 7.4%.

Mortgage rates have fallen sharply in the past year in large part due to the Federal Reserve lowering its benchmark short-term interest rate. Lower rates have helped to offset rising home prices across the U.S., mostly due to an ongoing lack of supply. Mortgage buyer Freddie Mac said last week that the average rate for a 30-year fixed-rate mortgage remained at a historically low 3.74%, compared to 4.55% a year ago.

The west saw the biggest gain in contract signings, up 5.5% from last month.