US pending home sales rise much more than expected
US pending home sales rose a lot more than expected in February, according to data from the National Association of Realtors.
The NAR's monthly index rose 5.5% to 112.3 from 106.4 in January and now sits 2.6% above a year ago, marking the highest level since last April. Economists had expected a 2.1% jump on the month.
The NAR's chief economist, Lawrence Yun, said: "Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country.
"The stock market's continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year."
The pending home sales index in the Northeast rose 3.4% to 102.1 and is now 6.6% above a year ago, while in the Midwest, the index increased 11.4% to 110.8 in February, but is still 0.6% below the same month last year.
Pending home sales in the South pushed up 4.3% to 127.8 and are now 4.2% above last February. Meanwhile, the index in the West was up 3.1% to 97.5, but is still 0.2% higher than a year ago.
Pantheon Macroeconomics said: "The index tends to lag mortgage applications by about three months, but the January number undershot and we expected a hefty rebound. But this is a bigger increase than our 4% forecast, perhaps suggesting that the long spell of warmer-than-usual weather also helped to lift activity. The mortgage applications numnbers now point to no further net increase in pending home sales over the next few months. We remain hopeful, though, that the combination of easing lending
standards and robust job growth will push applications higher in Q2 and boost home sales in Q3."