04:03 PM EDT, 10/31/2024 (MT Newswires) -- Pending home sales in the US climbed through the majority of October despite mortgage rates continuing to rise, but there are signs house hunters are pulling back ahead of the presidential election, Redfin (RDFN) said on Thursday.

The forward-looking indicator of home sales as determined by contract signings rose 4.5% year over year through the four weeks ended Oct. 27, the real estate brokerage's report showed.

New listings were up 3.4%, which Redfin said is in line with increases recorded over the last several months. The momentum comes despite a rise in mortgage rates after they dipped into the low 6% range at the end of the summer.

Daily average mortgage rates climbed back above 7% this week shortly after the four-week period ended Oct. 27, according to Mortgage News Daily data cited by Redfin.

"While it's not unusual for mortgage rates to rise heading into an election as investors' expectations change, mortgage rates surging to 7% after the (Federal Reserve's) interest-rate cut is surprising, as is the fact that pending sales have remained resilient," Redfin Economic Research Lead Chen Zhao said. The Fed cut interest rates by 50 basis points in September.

Rising mortgage rates and high home prices brought the typical monthly mortgage payment to $2,593 over the four-week period, near its highest level since July.

While the data indicate growth in pending sales and new listings, it's worth noting that comparison is being made to a sluggish October 2023, when the weekly average mortgage rate hit a two-decade high of 7.79%.

Redfin said there are signs house hunters are pulling back, with mortgage-purchase applications down 8% from a month ago.

"The last week or so has been quieter than usual because we're getting so close to the election, and people are wary about making a huge purchase just before a major event," said Nicole Stewart, Redfin premier agent in Boise, Idaho.

The US elections are set to be held on Nov. 5.

Price: 10.46, Change: +0.14, Percent Change: +1.31