In a positive turn of events, existing home sales in the United States for November surpassed economists’ predictions. The National Association of Realtors reported a seasonally adjusted annualized rate of 3.82 million, beating the anticipated figure of 3.77 million. This 0.8% increase from October is noteworthy, especially considering that existing home sales had hit a 13-year low the previous month.

The surge in home sales is attributed to a growing number of buyers entering the market, a trend fueled by the softening of mortgage rates. Lawrence Yun, the chief economist at the National Association of Realtors, emphasized that a significant shift is expected due to the recent plunge in mortgage rates. This positive development offers a promising outlook for the real estate market.

According to the Mortgage Bankers Association of America, the average 30-year mortgage rate dropped to 6.83% last week. This marks a significant milestone as it falls below 7% for the first time since July. The decline in mortgage rates is seen as a contributing factor to the increased demand for existing homes, providing prospective buyers with more favorable conditions to enter the market.