U.S. November existing home sales contracts hit a new high since the beginning of 2023

The National Association of Realtors (NAR) in the United States announced on Monday that the number of signed contracts for existing home purchases unexpectedly surged in November, reaching a nearly three-year high, primarily due to improved housing affordability, which attracted more buyers into the market.

The index for signed contracts of existing homes in the U.S. rose by 3.3% month-over-month in November, compared to an expected increase of 1%, with the previous value revised from an increase of 1.9% to 2.4%. The index for signed contracts of existing homes increased by 2.6% year-over-year. The index tracking this metric has risen to its highest level since February 2023.

NAR Chief Economist Lawrence Yun stated:

"The momentum among buyers is building. After adjusting for seasonal factors, the data shows this is the strongest performance of the year and the best since February 2023, nearly three years."

"The improvement in housing affordability—primarily due to declining mortgage rates and wage growth outpacing home price increases—is prompting buyers to start testing the market. Meanwhile, a more abundant selection of homes compared to last year is also attracting more buyers into the market."

Regionally, the number of purchase contracts increased in the Northeast, Midwest, South, and West.

Since the Federal Reserve resumed interest rate cuts in September, mortgage rates have slightly declined. However, given the Fed's signals that it may pause further rate cuts, it remains uncertain whether rates can significantly decrease in the coming months.

Data from mortgage finance agency Freddie Mac shows that the latest 30-year fixed mortgage rate is 6.18%, close to the lowest level since the fall of 2024