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.”