On Monday, data released by the National Association of Realtors (NAR) showed that the November existing home contract sales index hit a new high since the beginning of 2023, and the month-on-month increase exceeded expectations. This is the fourth month in a row that the existing home contract sales index has increased month-on-month.

The US existing home contract sales index rose 2.2% month-on-month in November. It is expected to rise 0.8%. The value before October was a 2% increase. The unseasonally adjusted US existing home contract sales index rose 5.6% year on year. It is expected to rise 7.9%. The value before October was up 6.6%.

The existing home contract sales index climbed to 79 in November, the highest level since February 2023.

By region, the southern region led the monthly growth rate of 5.2%, while the western and central western regions had smaller increases, while the northeastern region declined.

NAR chief economist Lawrence Yun said in a statement:

Consumers seem to have readjusted their expectations for mortgage interest rates and are taking advantage of more available inventory. Buyers no longer wait or expect a sharp drop in mortgage interest rates.

Financial blogger ZeroEdge commented that considering the lag in the home buying process, it is suspected that this hopeful rebound in housing sales will be very short. Furthermore, he is unconvinced that further interest rate cuts by the Federal Reserve will be helpful.

According to media analysis, housing affordability in the US is still under pressure due to high housing prices and rising borrowing costs. Federal Reserve officials said after the December policy meeting that they expect the pace of interest rate cuts to slow in 2025, which means that buyers will not have a chance to rest in the short term.

The existing home contract sales index is regarded as the leading indicator of existing home sales, as a property is usually contracted one to two months before sale.