The National Association of Realtors (NAR) confirmed on Monday that its Pending Home Sales Index (PHSI) is climbing toward record highs as contract signings in the Midwest and the south in February drove pending home sales to their highest level in nearly two years.
According to Mortgage News Daily, which combed through numbers, the PHSI rose 3.1 percent in February to 106.9, which is the second-highest number we’ve seen since it reached 109.4 in June 2013.
So what does it all mean?
“Pending sales showed solid gains last month, driven by a steadily-improving labor market, mortgage rates hovering around 4 percent and the likelihood of more renters looking to hedge against increasing rents,” Lawrence Yun, NAR chief economist, told MND. “These factors bode well for the prospect of an uptick in sales in coming months. However, the underlying obstacle – especially for first-time buyers – continues to be the depressed level of homes available for sale.”
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