Buyers are back in the housing market, but they are still having a hard time finding what they want and what they can afford.
The pending home sales index from the National Association of Realtors rose 1.6% in August, compared with July, and was 2.5% higher year over year. This index measures signed contracts to buy existing homes. August's gain reversed a slump in July and was likely fueled by falling mortgage rates.
Regionally, pending home sales in the Northeast rose 1.4% monthly and were 0.7% higher than a year ago. In the Midwest, sales increased 0.6% monthly and were 0.2% higher annually. Sales in the South increased 1.4% monthly and 1.8% annually, and in the West sales jumped 3.1% monthly and were 8.0% higher compared with August 2018.
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