Pending home sales increased 3.5% to an index reading of 109.1 in February, after a revised 3.0% decline to 105.4 in January, according to a report released Monday by the National Association of Realtors.
Economists polled by Thomson Reuters predicted the index would be up 1.0%
The January decrease was first reported as 2.5% to 106.0.
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 0.7% from last February, when the index was 108.3.
Regionally, pending sales were mostly higher. The Northeast saw a 0.2% drop to 94.0, while sales grew 0.7% in the West to 96.4. In the South, sales rose 2.1% to 122.4, and sales were up 11.4% to 112.6 in the Midwest.
“After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory,” NAR Chief Economist Lawrence Yun said. “Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau.”
