Key facts
- Pending home sales in the U.S. increased by 3.8% in May compared to April.
- Pending home sales in the U.S. increased by 4.8% in May compared to May of the previous year.
- The May increase in pending home sales surpassed expectations.
- The growth in pending home sales is attributed to better mortgage spreads.
- The growth in pending home sales is attributed to healthier inventory levels.
- The housing market saw stable mortgage rates during this period.
Pending home sales in the United States experienced a significant rise in May, with a 3.8% increase month-over-month and a 4.8% increase year-over-year. This performance surpassed market expectations. The growth in pending home sales is attributed to a combination of factors, including better mortgage spreads and a healthier inventory of homes available on the market when compared to recent years. The increase occurred despite mortgage rates remaining stable, suggesting underlying strength in the housing sector that is not solely dependent on falling borrowing costs. The data indicates a positive trend for the housing market, with more potential buyers moving forward with transactions.