NAR: Pending Home Sales Increased 0.7% in May

From the NAR: Pending Home Sales Edge Higher 0.7% in May

Pending home sales crept higher in May, ending a six-month streak of declines, according to the National Association of Realtors®. Regionally, month-over-month results were mixed as the Northeast and South experienced increases while the Midwest and West posted decreases. Year-over-year contract activity slid in all four major regions.

The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, inched up 0.7% to 99.9 in May. Year-over-year, transactions dropped 13.6%. An index of 100 is equal to the level of contract activity in 2001.

"Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition," said NAR Chief Economist Lawrence Yun. "Contract signings are down sizably from a year ago because of much higher mortgage rates."
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The Northeast PHSI jumped 15.4% compared to last month to 86.7, down 11.9% from May 2021. The Midwest index retreated 1.7% to 98.6 in May, a decline of 8.8% from a year ago.

The South PHSI increased 0.2% to 119.0 in May, a 13.8% drop from the previous year. The West index contracted 5.0% in May to 81.6, down 19.8% from May 2021.
emphasis added

This was above expectations of a 2.0% decrease for this index. Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in June and July.