More Americans continued to sign contracts to buy homes during August, suggesting that the U.S. housing market is rebounding after a sharp drop during the first months of the CCP virus pandemic.
Signatures of home sales contracts in August continued to increase, marking four consecutive months of positive contract activity, according to the National Association of Realtors (NAR). The growth in the number of transactions was seen in each of the four major regions of the United States.
The indicator used to define the variability in home sales is Pending Home Sales Index (PHSI), an indicator of home sales based on signed contracts, which in August rose 8.8% to 132.8 points (100 being the level of contractual activity in 2001), a historic high.
It had sunk to a minimum of 69 in April, when buyers and sellers were paralyzed when the CCP Virus penetrated the United States most heavily.
According to the report, contract signature levels were expected to remain stable during the pandemic, so a significant increase was received with great surprise and optimism.
It should be noted that the signing of a contract does not necessarily imply the completion of the sale, although it is very unusual, it may happen that a sales contract is not finally completed.
“Housing prices are heating up rapidly,” said Yun, an NAR spokesman. “Low mortgage rates are allowing buyers to obtain cheaper mortgages, but many may find it more difficult to make the required down payment.
Contract signings are a barometer of completed purchases over the next two months, so this month’s figures point to continued strong sales in October.
According to Fox News, the housing market has been one of the highlights of the U.S. economy during the Trump era, although it is still trying to regain its momentum before the virus spread.
Another factor that is making the purchase of properties possible is that interest rates are historically low, not exceeding 3%, and are pushing savers and investors into the housing market, even when home prices are also rising due to the lack of available properties.