US Pending Home Sales Rise 4% in August on Falling Mortgage Rates

Pending home sales in the U.S. rose sharply in August, increasing 4% from July to reach the highest level in five months, according to the National Association of Realtors. This 3.8% year-over-year increase was driven by gains in the Midwest, South, and West, while the Northeast saw a slight decline month-over-month but remained above last year's levels. The rise in signed contracts is a positive indicator for completed home sales in the coming months, signaling renewed momentum in the housing market after a weak summer. Mortgage rates eased to an average of 6.59% in August and have fallen further to around 6.3%, providing some relief to buyers amid ongoing affordability challenges and limited supply. Despite this improvement, pending sales remain well below typical pre-pandemic levels, with inventory tight in some regions and a notable increase in sellers delisting homes due to pricing difficulties. Economists suggest that while lower borrowing costs have helped, the market’s recovery will remain gradual, and inventory may even shrink this fall as sellers wait for better conditions.