U. S. home contract signings at record levels in November

SILVER SPRING, Md. — The number of Americans who signed contracts to buy homes declined last month, but was still a record high for November when a seasonal slowdown traditionally seeps into the real estate market.

The National Association of Realtors said Wednesday that its index of pending sales fell 2.6% to 125.7 in November, down from October’s revised reading of 129.1. An index of 100 represents the level of contract activity in 2001. It was the third straight monthly decline.

Contract signings are a barometer of finalized purchases over the next two months, so Wednesday’s report may preview what could be a strong winter for the housing market.

Contract signings are still 16.4% ahead of where they were last year, thanks to a big summer rebound that followed a spring washout due to the coronavirus outbreak. Contract signings in all four regions — the Northeast, South, Midwest and West — declined from October to November but are up doubledigits yearoveryear through last month.

Historically low interest rates are drawing prospective buyers into the market, but home prices have risen significantly the past year as supply remains near alltime lows.

U. S. home prices jumped 7.9% in October, the most June 2014, according to S& P CoreLogic CaseShiller 20city home price index released Tuesday.

Mortgage finance giant Freddie Mac reported last week that the average rate on the 30year fixedrate home loan remained at a record low 2.66%.