Pending home sales in August rise 4% from July as mortgage rates drop

Market Trends - Pending home sales increased by 4% in August compared to July, exceeding expectations for flat growth [1] - Year-over-year, pending home sales were up 3.8% [1] - The real estate industry anticipates overall sales trajectory to rise due to decreasing interest rates [2] - A realtor survey indicates that 19% expect increased buyer traffic in the next three months, up from 16% last month [2][3] Inventory and Regional Sales - August saw the first inventory decrease since the beginning of the year [3] - Sales increased in three out of four regions, with the Northeast being the only region experiencing a decline [3] - The Midwest region demonstrated the strongest sales performance [3] Forward-Looking Indicators - Pending home sales are based on signed contracts, serving as a forward-looking indicator for closed sales in September and October [1] - New home sales also measured by signed contracts experienced a significant surge [2]