Pending U.S. home sales in August rose by record 8.8%

Sept. 30 (UPI) -- Pending home sales in the United States grew last month by nearly 9%, a record, new data showed Wednesday.

The National Association of Realtors data showed contract signings surged by 8.8% for the month of August.

The NAR Pending Home Sales Index rose to 132.8 and the figure was a 24.2% rise over August 2019.

"Tremendously low mortgage rates -- below 3% -- have again helped pending home sales climb in August," Lawrence Yun, NAR chief economist, said in a statement.

"Additionally, the Fed intends to hold short-term fed funds rates near 0% for the foreseeable future, which should in the absence of inflationary pressure keep mortgage rates low."

The NAR Housing Market Recovery Index indicated the greatest recoveries have been seen in the Seattle, Las Vegas, Boston, Denver and Philadelphia areas.

Yun said although pending contracts are at an all-time high, it doesn't necessarily mean record sales because not all contracts lead to closings. He said, though, pending sales are outperforming many pre-pandemic averages.

"Home prices are heating up fast," he said.

"The low mortgage rates are allowing buyers to secure cheaper mortgages, but many may find it harder to make the required down payment."