Pending home sales rose 3.3% in November due to lower mortgage rates and slowing price growth, marking the largest jump since early 2023. All regions saw an uptick in contract activity, with the West leading at 9.2%. Economists expected only a 0.9% increase, showing stronger buyer interest than anticipated.

Chief economist Lawrence Yun noted that improving housing affordability and more inventory choices are attracting buyers. Pending home sales serve as a leading indicator of market activity, suggesting a positive trend ahead. The housing market’s recent freeze due to rising mortgage rates may be thawing, with rates dropping to 6.2%.

Despite the recent increase, the Pending Home Sales Index remains low at 79.2. Economists predict that 2025 home sales may be at three-decade lows but anticipate a gradual market normalization as inventory levels improve and wage growth outpaces home price gains. Analysts foresee a positive outlook for the housing market in the coming year.

Read more at Yahoo Finance: Pending home sales jump by most since February 2023 in November