Pending home sales increased 2.0% in February to a level of 72.0 on the National Association of Realtors Pending Home Sales Index. Compared with February 2024, pending home sales declined 3.6%.
On a regional month-over-month breakdown, the Northeast PHSI decreased 0.9%, the Midwest index increased 0.7%, the South increased 6.2% and the West decreased 3.0%.
"Despite the modest monthly increase, contract signings remain well below normal historical levels," NAR Chief Economist Lawrence Yun said in a statement. "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."
NAR forecasts mortgage rates will average 6.4% in 2025 and 6.1% in 2026. Given the lower forecasted mortgage rates, NAR anticipates existing-home sales will rise by 6% in 2025 and by another 11% in 2026.
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