Pending Home Sales rose 3.4% from February to March per the National Association of REALTORS® (NAR), coming in well above estimates.
This report measures signed contracts on existing homes, making it an important forward-looking indicator for closings on these homes, which are measured in the Existing Home Sales report.
What’s the bottom line? The Pending Home Sales index hit its highest level in a year, showing that activity is picking up heading into the spring homebuying season. An increase in inventory and eventual decline in mortgage rates will only boost these sales figures, with NAR’s Chief Economist, Lawrence Yun, noting, “Inventory will grow steadily from more home construction, and various life-changing events will require people to trade up, trade down or move to another location.”