(Reuters) – Contracts to purchase U.S.-owned homes rose in October. This was likely due to buyers racing to grab properties at a time when mortgage rates were rising.

On Monday, the National Association of Realtors (NAR), reported that its Pending Home Sales Index was up 7.5%, to 125.2, according to signed contracts. In all regions, there was an increase in pending home sales.

Reuters polled economists and predicted that October’s contract sales, which are sold after a period of time, would grow 0.9%. Year-over-year, the October decline in pending home sales was 1.4%. The lack of inventory has resulted in double-digit home price growth.

Lawrence Yun (NAR chief economist) stated that consumers who are financially strong are being motivated by rising rents and anticipated increases in mortgage rates to buy a house sooner than they should.

The coronavirus pandemic saw a surge in housing demand as Americans moved from cities to the suburbs in search of larger houses that could accommodate their online education and work from home.

With the COVID-19 vaccinations, schools have been reopened and workers returning to their offices are able to buy less.

NAR reported that total home sales in 2021 will reach six million. This would mark the highest number of homes sold since 1995.