Pending Home Sales Up 1.1% in May

The National Association of Realtors is reporting that pending home sales increased 1.1% in May, which they say was a positive variation from the minor sales dip seen in April.  The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) decreased to 104.3 in April, with the Midwest being the only region to experience growth. In addition, they reported that year-over-year contract signings declined 2%, marking the 16th straight month of annual decreases.

Lawrence Yun, NAR chief economist, said lower-than-usual mortgage rates have led to the increase in pending sales for May. “Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”

Click here to read the full release at the National Association of Realtors.