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At the height of real estate season, activity in the market rebounded 1.1 percent, according to the National Association of REALTORS® Pending Home Sales Index, based on contract signings. On an annual basis, activity declined 0.7 percent.

Credit: National Association of REALTORS®

“Rates of 4 percent, and in some cases even lower, create extremely attractive conditions for consumers,” says Lawrence Yun, chief economist at NAR. Buyers, for good reason, are anxious to purchase and lock in at these rates. The Federal Reserve may cut interest rates one more time this year, but there is no guarantee mortgage rates will fall from these already historically low points.

“Job creation and a rise in inventory will nonetheless drive more buyers to enter the market,” Yun says. “Home builders have not ramped up construction to the extent that is needed. Homes are selling swiftly, and more construction will help keep home prices manageable and thereby allow more middle-class families to attain ownership opportunities.”

For more information, please visit www.nar.realtor.

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