Pending home sales continued to surprise in June, posting back-to-back months of improvement. According to the Pending Home Sales Index from the National Association of Realtors (NAR), sales in June increased 16.6%. Pending sales are also up more than 6% from June 2019.
"It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago," said NAR Chief Economist Lawrence Yun in a release. "Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve's maximum liquidity monetary policy."
All four regions in the U.S. saw double-digit improvement in June, with the Northeast leading the way at more than 54%. The Midwest, West and South were each around 12%. However, the Northeast was still down about 1% from June 2019. The Midwest, West and South were each up from a year ago.
It was expected that pending home sales would increase 12.5% in June, states CNBC. Meanwhile, economists, according to Bloomberg, predicted a more generous 15% increase—both still outdone by reality.
-Michael Miller, managing editor