US pending home sales jumped in March, beating expectations by a mile

Pending home sales unexpectedly increased in March, rising by 3.4%, according to the National Association of Realtors. This outperformed economists’ forecast of a 0.3% decline. Contract signings rose across the country, except in the Midwest. However, Lawrence Yun, NAR’s chief economist, noted that pending home sales have not seen significant gains in the past year without declining mortgage rates and rising inventory. The increase in mortgage rates in March, reaching a five-month high, may impact future home sales. Housing affordability is also being affected by rising home prices and limited inventory.