By Arlenys Tabare
According to the National Association of Realtors (NAR) report, The pending home sales index rose 1.5% during the month of March, reaching 73.7 points, The northeast region being the one that registered the most increases in contracts compared to the south, where there was a notable decrease.
Although the data exceeds the forecasts of some economists, who anticipated only an increase of 0.5%, compared to last year, pending home sales registered a drop of 1.1%.
In this regard, Lawrence Yun, chief economist at NAR, commented that “demand is stronger for mortgage rates among first-time buyers, especially among younger ones. Therefore, “Increased supply and construction of new homes should focus on smaller, more affordable homes.”said.
The recent data on the increase in contracts for the purchase of used homes is known in the midst of a tight market where mortgage rates have been fluctuating in the last three months and where the lack of inventory, which has pressured the rise of property prices, continues to keep future buyers away from the sector.
However, higher mortgage rates have been the response to economic uncertainty mainly due to the development of the war in Iran in recent weeks, which, after the closure of the Strait of Hormuz, has increased the price of energy, driving up inflation again above 3%.
According to data from Freddie Mac, Mortgage rates are at 6.30% from 5.90% before the war, which has partly slowed down the market in one of the most anticipated seasons, such as spring.
Keep reading:
- Monthly mortgage payment in the US reaches a new high, according to Realtor data
- US home sales fell 3.6% in March
- Property taxes increased up to 3.7% more than in 2024
- Mortgage rates in the US fell to 6.37% in the first week of April
