Pending US Home Sales Rise for Third Straight Month in April

Contracts to purchase previously owned U.S. homes rose for a third consecutive month in April, a sign of resilient buyer activity despite elevated mortgage rates and economic uncertainty. The National Association of Realtors reported Tuesday that its Pending Home Sales Index increased 1.4 percent last month to a reading of 74.8, surpassing economist forecasts for a one percent gain.

The increase reflects a forward-looking indicator of the housing market, as contract signings typically become completed sales within one to two months. On a year-over-year basis, pending sales were up 3.2 percent.

Regional performance was uneven. The Northeast led with a 6.6 percent monthly gain, followed by a 3.0 percent increase in the Midwest. The West saw a modest 0.4 percent rise, while the South contracted by 0.7 percent. Year-over-year, pending sales rose in the Midwest, South, and West, but fell in the Northeast.

Lawrence Yun, chief economist for the National Association of Realtors, said buyers are emerging with cautious optimism. He stated that demand will easily be even higher once mortgage rates retreat to the levels seen earlier this year.

The market continues to face significant...