Bloomberg News
Pending sales of previously owned homes in the U.S. picked up in May after a sharp decline a month earlier, although overall activity remained subdued headed into summer.
An index of contract signings rose 1.8% last month to 72.6, a mild gain after dropping in April by the most since 2022, data released Thursday by the National Association of REALTORS® show. That beat the median estimate of economists surveyed by Bloomberg, who expected the index to rise 0.1%. Signings picked up in all four U.S. regions, most notably in the West, which rose by the most since December 2023.
NAR Chief Economist Lawrence Yun attributed May's rise to resilience in the U.S. labor market, with wage gains outpacing home price appreciation. However, "mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains," Yun said in a prepared statement.
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