Pending home sales were on the rise in February, according to data from the National Association of Realtors (NAR).
Last month, NAR’s Pending Home Sales Index (PHSI) grew 2.0% to 72.0 in February; an index of 100 is equal to the level of contract activity in 2001. Year-over-year, pending transactions declined 3.6%.
On a regional basis, NAR reported that the Northeast and West experienced month-over-month losses in transactions while the Midwest and South saw gains. On a year-over-year measurement, all four regions experienced a decline in contract signings.
“Despite the modest monthly increase, contract signings remain well below normal historical levels,” said NAR Chief Economist Lawrence Yun. “A meaningful decline in mortgage rates would help both demand and supply – demand by boosting affordability, and supply by lessening the power of the mortgage rate lock-in effect. Home price growth will moderate due to more supply coming onto the market. Having income and wages rise faster than home prices are welcome to improve affordability.”
