'Homebuyer momentum is building': Pending home sales jump by most since February 2023 in November

Core Insights - Lower mortgage rates and slowing price growth have led to a 3.3% increase in pending home sales in November, marking the largest rise in contract signings since early 2023, surpassing the expected 0.9% increase [1][2] - Year-over-year, contract activity has risen by 2.6%, with all regions experiencing an increase, particularly the West, which saw a 9.2% month-over-month gain [2][3] - The improving affordability in housing, driven by lower mortgage rates and faster wage growth compared to home prices, is encouraging buyers to enter the market [3][4] Market Conditions - The housing market has faced significant challenges since mid-2022 due to rising mortgage rates and increased home prices, which have excluded many potential buyers [4][5] - The average rate for a 30-year mortgage has been around 6.2% recently, down from a peak of 7% in early 2025, contributing to the recent uptick in market activity [5][6] - Despite the recent increase, home sales in 2025 are projected to be at or near three-decade lows, although a gradual normalization of the housing market is anticipated as inventory levels improve and mortgage rates decrease [6]