H
ome buyers are showing signs of returning to the market. According to a Redfin report, pending home sales rose 2% year-over-year for the four-week period ending October 6, marking the largest annual gain in nearly three years. The Federal Reserve's interest rate cut last month is cited as a key factor, with the typical housing payment decreasing to $2,526 per month - near its lowest level since the start of the year.

    Pending sales increased in most of the 50 most populous metros, led by a 14.1% year-over-year gain in Phoenix. However, four Florida metros saw significant declines due to hurricane damage and rising insurance costs. A Redfin survey found that one-third of young adults are reconsidering their move plans following recent hurricanes.

    The growth in pending sales may slow in the coming weeks as mortgage rates tick up after a strong jobs report. Despite this, rates remain lower than last year's levels. Redfin agent Shoshana Godwin notes that buyers may face higher rates now or later, but it's also possible for rates to drop further and increase competition.

    The median asking price saw its largest annual jump in two years, increasing 5.7% to $399,925. Active listings rose 18% over the four-week period, marking the smallest annual gain in six months.