More buyers are jumping into the housing market this fall. The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—rose nationally by about 2% in October. Still, pending sales remain 0.4% below levels a year ago, as some would-be buyers remain cautious.
The Midwest is seeing the fastest growth in new contracts nationwide. The region posted a 5.3% jump in pending home sales—outpacing all other parts of the country—likely due to its more attainable price points.
“The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region,” says Lawrence Yun, NAR’s chief economist. Existing-home sales, reflecting closed sales, also saw their biggest regional gain in the Midwest last month, up 5.3% from September. The region’s median home price, $319,500 in October, remains below those in the South ($362,300), Northeast ($503,700) and West ($628,500).
“First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory,” Yun said in last week’s existing-home sales report. In the Northeast, “first-time buyers are facing headwinds ... due to a lack of supply,” he says, whereas the West’s high home prices are keeping many first-time buyers out of the market.
Housing Momentum Building
Across the country, buyer activity is picking up this fall as mortgage rates have retreated—the 30-year fixed rate mortgage averaged 6.26% in the latest week, down from a 7% average at the start of the year. Improving affordability and reportedly more price adjustments in certain markets are helping some buyers to re-emerge.
“Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season,” Yun says.
Existing-home sales climbed 1.2% in October and are 1.7% higher than a year earlier. Meanwhile, mortgage applications for home purchases—a key gauge of buyer demand—have surged, rising 26% annually in the latest week, according to the Mortgage Bankers Association.
“Job gains in September—following the data blackout [due to the government shutdown]—are reassuring and suggest the economy is not slipping into a recession,” Yun says. “This may boost confidence in future home buying.”
Looking ahead, Yun expects existing-home sales to jump 14% in 2026 as mortgage rates drift toward an average of 6%, creating better affordability conditions for long-waiting buyers.
Read more: Housing Market Set for a 2026 Comeback, NAR Predicts
Here’s a closer look at how pending home sales fared in October, according to NAR’s Pending Home Sales Index:
Northeast: +2.3% in October compared to September; -1% from October 2024
Midwest: +5.3% in October; +0.9% from October 2024
South: +1.4% in October; +2% from October 2024
West: -1.5% in October; -7% from October 2024
Source: https://www.nar.realtor/magazine/real-estate-news/economy/more-home-buyers-go-under-contract
Thanks for reading!
D2 National Abstracting Company, Sunbury/Westerville, OH
Services Offered: Title Search (Residential & Commercial), Post-closing Reviews, Closing Package prep, Docs Prep, e-Recording, 3rd Party services ordering, Final Docs Review & Compliance Review. Appraisal Services/Vendor Management.
Address & Contact: 470 Olde Worthington Road, Suite 200, Westerville, OH 43082 | Phone: +1 614-300-7980 | Fax: +1 450-485-7584 | inquiry@psard2consulting.com | www.psard2consulting.com