What happens next Where's my refund? Best CD rates this month Shop and save 🤑
BUSINESS
Residential real estate

Pending home sales contracts edge up in Sept.

AP
Sign outside home for sale in south Denver.
  • Average rate on 30-year fixed mortgages edges up to 3.41%
  • Sept. pending home sale contracts just shy of 'healthy' level
  • Contracts for home purchases in Sept. up 14.5% year over year

WASHINGTON (AP) — Slightly more Americans signed contracts last month to buy homes, another sign that the housing recovery is picking up, boosted by mortgage rates that continue to hover near record lows.

The National Association of Realtors says its seasonally adjusted index of sales agreements rose in September to a reading of 99.5. That's up from August's reading of 99.2 but below a two-year high of 101.9 reached in July. Contracts are up 14.5% from a year ago.

A reading above 100 is considered healthy. The index bottomed at 75.88 in June 2010 after a home buyer's tax credit expired.

The pending home sales index is a measure of the number of signed contracts to purchase homes. The index can signal where the housing market is headed because a signed contract usually results in a final sale one or two months later.

The average 30-year fixed mortgage rate rose slightly this week, up to 3.41% from 3.37% last week, according to mortgage buyer Freddie Mac.

Three weeks ago, the rate touched 3.36%, the lowest level on records dating to 1971.

The average rate on the 15-year fixed mortgage, often used for refinancing, rose to 2.72%. That's up from last week's record low of 2.66%.

The rate on the 30-year loan has remained below 4% all year, helping drive a modest housing recovery. And rates have fallen even further since the Federal Reserve started a plan in September to buy $40 billion of mortgage-backed bonds a month to encourage borrowing and spending.

Featured Weekly Ad