Home Buyers Sign More Contracts In May

When a contract to buy a home is signed that home’s sale is considered pending until it closes weeks later. The National Association of Realtors tracks pending home sales because they are considered an early indicator of where future sales data is headed. In May, the NAR’s Pending Home Sales Index saw a 1.8 percent month-over-month increase, with gains seen in all four regions of the country. Lawrence Yun, NAR’s chief economist, says mortgage rates remain home buyers’ top consideration. “Consistent job gains and rising wages are modestly helping the housing market,” Yun said. “Hourly wages are increasing faster than home prices. However, mortgage rates fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.” Year-over-year, contract signings rose in the Midwest and South but still lag last year’s numbers in the West and Northeast.