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ower mortgage rates are boosting buyer confidence, hinting at more closed sales this fall. NAR’s Pending Home Sales Index climbed 4% in August and is 3.8% higher than a year ago. Chief economist Lawrence Yun links the uptick to rates slipping below 6.5%. “Lower rates let more buyers go under contract,” he says, noting the Midwest’s favorable affordability is drawing more buyers than other regions.

    The Midwest remains the strongest market this summer. Median prices are 22% below the national average ($330,500 as of August). It topped the country in both existing‑home and pending sales in August, with contract signings up 8.7% from July and 6.7% YoY—outpacing other regions.

    Nationally, the rise in contract signings offers a welcome boost for a market that has struggled to gain traction. Existing‑home sales fell 0.2% from July, but Yun says falling rates and rising inventory should lift sales in coming months.

    Mortgage applications for purchases are up 18% YoY, per the Mortgage Bankers Association, while rates have fallen from near‑7% highs to an average of 6.30% as of Sept. 25, according to Freddie Mac.

    Regional performance in August: Northeast – contract signings down 1.1% MoM, up 2.6% YoY; Midwest – up 8.7% MoM, 6.7% YoY; South – up 3.1% MoM, 4.2% YoY; West – up 5% MoM, 0.2% YoY.