Pending home sales in the United States rose by 2.0% in October, marking the third consecutive month of increases, according to data from the National Association of REALTORS (NAR). The rise was observed across all four major U.S. regions, with the Northeast leading the gains.

The Pending Home Sales Index (PHSI), a measure based on contract signings, climbed to 77.4 in October, reflecting a year-over-year increase of 5.4%. An index level of 100 corresponds to the contract activity recorded in 2001.

"Homebuying momentum is building after nearly two years of suppressed home sales," said NAR Chief Economist Lawrence Yun. He noted that despite modestly rising mortgage rates and a recent Federal Reserve rate cut, continuous job growth and increased housing inventory are drawing more consumers into the market.

SentriLock lockbox openings also saw an increase of 7% compared to last year.

Regionally, the Northeast PHSI rose by 4.7% from September to reach 68.7, showing a yearly increase of 7.2%. The Midwest saw its index grow by 4.0% to 77.8 in October, which is up by 1.8% from last year.

In the South, the PHSI increased by 0.9%, reaching an index value of 90.0—an annual rise of 2.5%. The West region's index edged up slightly by 0.2% month-over-month to reach 64.1 but showed a significant yearly jump of 16.8%.

"It's encouraging to see contract signings increasing in all major regions of the country," Yun added, noting notable gains particularly in expensive areas like the Northeast and West due to strong stock market performance benefiting upper-end buyers.

The National Association of REALTORS represents over one million members involved in various aspects of real estate industries across America.