By Maria Martinez


The number of houses going under contract in the U.S. increased in October, rebounding after a decline the previous month, according to data from the National Association of Realtors released Monday. Here are the report's main takeaways:

--The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, rose 7.5% to 125.2 in October compared with the previous month.

--Economists polled by The Wall Street Journal expected the indicator to increase by 0.7% on the month.

--Pending home sales were down 1.4% in October compared with the same month a year earlier.

--"Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later," said Lawrence Yun, NAR's chief economist. This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low, he said.

--Month-on-month transactions in October increased 6.9% in the Northeast. In the Midwest, the index climbed 11.8%. Pending home sales transactions in the South rose 8.0% in October, and the index in the West grew 2.1%.

Write to Maria Martinez at


(END) Dow Jones Newswires

November 29, 2021 10:26 ET (15:26 GMT)

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