Pending Home Sales Rise in April but Miss Forecasts
Filed under: Mortgages, Real Estate, Economic Indicators, Housing Market, Home Buying
By Jason Lange
WASHINGTON — Contracts to buy previously owned U.S. homes rose modestly in April, a sign of stabilization in the housing market, which had been pummeled by higher interest rates and a harsh winter.
The National Association of Realtors said Thursday its Pending Home Sales Index, based on contracts signed last month, increased 0.4 percent to 97.8. The increase was below economist expectations for a 1 percent advance.
Sales stumbled last summer after the U.S. Federal Reserve signaled it would soon reduce economic stimulus efforts, pushing mortgage rates sharply higher. Rates have eased this year, but for many homebuyers they remain about 0.7 of a percentage point higher than they were in May of 2013.
Sales have now risen for two consecutive months. However, they fell 9.2 percent in the 12 months through April.
Contracts increased in the Northeast and the Midwest, but fell in the South and the West.
(This is a breaking news story. Check back for updates.)
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