Dec 30 Reuters Contracts to buy U.S. previously owned homes rose more than expected in November, notching a fourth straight month of gains as buyers focused on taking advantage of improved inventory despite stubbornly high mortgage rates.

The National Association of Realtors NAR said on Monday its Pending Home Sales Index, based on signed contracts, rose 2.2 last month to 79.0 the highest since February 2023 from 77.3 in October. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would rise 0.9 after increasing 1.8 in October.

Pending home sales rose 6.9 from a year earlier. On a regional basis, the Midwest, South and West saw monthly increases while contract signings slipped in the Northeast. All four regions posted annual gains.

The increase in contract signings in November dovetailed with a second straight rise in existing home purchase completions last month reported previously by NAR. That earlier report showed the inventory of homes for sale in November was up by nearly 18 from a year earlier.

Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory, said Lawrence Yun, the NAR39;s chief economist. Mortgage rates have averaged above 6 for the past 24 months. Buyers are no longer waiting for or expecting mortgage rates to fall substantially. Furthermore, buyers are in a better position to negotiate as the market shifts away from a sellers market….