Gifts aren’t the only things that Americans have been splurging on this holiday season. Last month, pending home sales rose by 3.3% to their highest level since February 2023, according to the National Association of Realtors (NAR).
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“Homebuyer momentum is building,” said NAR Chief Economist Lawrence Yun. “The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023.”
Housing Affordability Improves as Mortgage Rates Fall
Yun added that falling mortgage rates have helped improve housing affordability. In addition, wage growth has outpaced the rate of home price appreciation, while higher inventory has led to more options for buyers.
The 30-year fixed-rate mortgage currently sits at 6.18% and has steadily declined this year after peaking at 7.04% in January. This comes alongside the Fed lowering interest rates by 75 bps, with economists calling for more easing in 2026.
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