US pending home sales jump to highest level since 2006

Contracts to buy previously owned US homes surged far more than expected in April to the highest level in more than a decade, another sign the economy has gained steam during the second quarter. The National Association of Realtors said its pending sales index, based on contracts signed last month, increased 5.1 per cent to 116.3, a level not seen since February 2006. The increase in pending home sales for March was also revised marginally upward. Overall pending home sales last month were up 4.6 per cent from a year ago. “The housing sector has steadily strengthened on the back of an economy near full employment and historically low mortgage rates,” reported by Reuters. Contracts rose to three of the nation’s four regions, with the West reporting an 11.4 percent jump and the South showing a 6.8 percent increase. The Midwest reported a 0.6 percent decline, but pending home sales in that region were still up 2.0 percent from a year ago.