B
uyers found some relief last month, leading to increased sales activity, but rising inflation looms on the horizon. Key takeaways include:

    Pending home sales rose for the third consecutive month, despite high mortgage rates, with a 2% increase from September and a 5.4% year-over-year gain.

    Improved affordability and inventory are contributing to more homebuying activity, with Odeta Kushi noting that buyers found relief in higher inventory and a resilient labor market.

    However, new home sales declined by 17.3% between September and October and were down 9.4% year-over-year, according to the U.S. Census Bureau.

    Mortgage interest rates dipped slightly this week, with the 30-year fixed-rate mortgage at 6.81%, but remain a concern for buyers.

    The economy's resilience is reflected in rising household incomes, which have improved affordability by 11% compared to last year's peak mortgage rate of around 7.8%.

    Inflation ticked up 0.2% last month to 2.3%, according to the Personal Consumption Expenditures Price Index, potentially prompting the Fed to pause rate cuts and keep mortgage rates elevated.

    The uncertainty surrounding economic policies following the election may be contributing to the market's relative stability, with some homebuyers moving forward with purchases despite rising borrowing costs.