The housing market is on the upswing despite rising mortgage rates.

Activity in the US housing market made an unexpected leap in September. Despite rising mortgage rates, the index for pending home sales increased by 7.4%, as buyers benefited from lower rates at the end of summer and an increased supply of properties. The value climbed to 75.8 points – the highest level since March of this year – according to the National Association of Realtors. By the way, 100 points correspond to the level of contract signings from 2001. Compared to the previous year, pending contracts rose by 2.6%. All US regions recorded increases, with the West making the largest jump with a rise of 9.8%. In the Midwest, the increase was 7.1% month-over-month. According to Lawrence Yun, chief economist of the NAR, buyers were able to benefit from late summer's lower mortgage rates and a larger selection of properties. He predicts further increases if the economy continues to create jobs, the supply of properties grows, and rates remain stable. However, recent weeks have seen mortgage rates rise again, causing both buyers and sellers to act more cautiously as the housing market enters its seasonal slowdown phase. The average rate for a 30-year mortgage increased from 6.08% at the end of September to 6.54% last week, according to Freddie Mac, and has even surpassed the 7% mark in recent days according to data from Mortgage News Daily. The current year for the real estate market remains below expectations, as prices hover near record highs and all parties adjust to the new rates. Sales of existing homes fell by 1% in September to an annual rate of 3.84 million, according to NAR data from last week. However, Yun expects the market to recover to around 4.47 million sales next year and could exceed the 5-million mark by 2026. Price increases could slow with the rise in supply and then follow inflation.