October’s pending home sales increased month-over-month, according to data from the National Association of Realtors (NAR). This ,arked the third consecutive month that pending home sales increased.

According to NAR’s Pending Home Sales Index (PHSI), October’s pending home sales increased 2 percent to 77.5. The PHSI is a forward-looking indication of home sales based on contract signings. For reference, an index of 100 is equal to the level of contract activity measured in 2001.

All four major regions reported month-over-month increases in the number of pending transactions, with the Northeast’s numbers topping the list as most improved, with a 4.7 percent increase month-over-month to 68.7. The West had the highest index number amongst the regions at 90, a 0.9 percent increase month-over-month and 2.5 percent increase year-over-year.

“Homebuying momentum is building after nearly two years of suppressed home sales,” NAR Chief Economist Lawrence Yun said. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”

The Northeast’s PHSI for October also increased year-over-year by 7.2 percent. Other regions experienced increases as well: the Midwest index grew 4 percent to 77.8 in October, up 1.8 percent year-over-year, and the West index edged higher by 0.2 percent from the prior month to 64.1, up 16.8 percent from October 2023.

“It’s encouraging to see contract signings increasing in all major regions of the country,” Yun said. “More notable gains from a year ago occurred in the expensive regions of the Northeast and West. The record-high stock market is providing a boost for upper-end homebuyers.”