More Americans signed contracts to buy homes last month as warm weather and rising confidence appeared to encourage consumers to look for houses, The Associated Press reports.
The National Association of Realtors says its pending home sales index climbed 5.5% in February to 112.3, its highest point since April and its second-highest point since 2006.
NAR Chief Economist Lawrence Yun suggests the rising stock market helped bolster confidence. “Last month being the warmest February in decades also played a role in kick-starting prospective buyers’ house hunt,” Yun says.
In addition, rising prices may have nudged some Americans into making offers for homes now out of fear of having to pay more if they wait.
The NAR’s index of pending home sales rose 11.4% in the Midwest, 4.3% in the South, 3.4% in the Northeast and 3.1% in the West.
The U.S. housing market is looking strong despite a sharp rise in mortgage rates since the presidential election.
Pending homes sales in the Baton Rouge area rose nearly 19% in January, according to the latest data available from the Greater Baton Rouge Association of Realtors.
