Pending home sales went up 2% in October, marking the third consecutive month of increases, according to the National Association of Realtors (NAR).

The news was surprising after the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Tuesday that October home sales plummeted from September, down 17.3%. The fall was blamed on rising mortgage rates and two hurricanes hitting Florida and other Southern states, which disrupted home sales.

None of those issues were evident in the NAR’s Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, which rose 2% to 77.4 in October. Pending transactions were also up 5.4% from the same month a year ago. The index is benchmarked to 2001, so a reading of 100 is equal to the level of contract activity happening that year.

NAR reports that all four major U.S. regions saw month-over-month gains in transactions, with the Northeast leading the way. Year-over-year contract signings were up in all four regions.

“Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”

October pending home sales activity in the Northeast rose 4.7% month-over-month and was up 7.2% from a year ago. The Midwest saw pending home sales jump 4%, while rising 1.8% from last year. The South rose 0.9% month over month, and 2.5% from last year. The West index moved up slightly at 0.2% for the month but increased by a hefty 16.8% from October 2023.

“It’s encouraging to see contract signings increasing in all major regions of the country,” Yun said. “Most notable gains from a year ago occurred in the expensive regions of the Northeast and West.”