Pending home sales increased 0.8% in February to a level of 83.2 on the National Association of Realtors’ Pending Home Sales Index. It’s the third month in a row of pending home sales increases.
Compared with February 2022, pending home sales were down 21.1%.
“After nearly a year, the housing sector’s contraction is coming to an end,” stated NAR Chief Economist Lawrence Yun. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”
Regionally, the Northeast, Midwest and South posted pending home sales increases in February, growing 6.5%, 0.4% and 0.7%, respectively. The West index declined 2.4%.
“Mortgage rates have improved in recent weeks after the federal government guaranteed the status of most mortgages amidst uncertainty in the financial market,” Yun added. “While access to commercial mortgage loans could become increasingly difficult, residential mortgage loans are expected to be more readily available.”
An index of 100 is equal to the level of contract activity in 2001.
The full NAR report can be found here.