The housing market continued to show signs of improvement as pending home sales increased 0.1% in May, the National Association of Realtors reported yesterday. It was the third consecutive monthly rise.
The association's Pending Home Sales index was 90.7, compared with an upwardly revised 90.6 in April. The May index was 6.7% higher than in May 2008.
"Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy," National Association of Realtors Chief Economist Lawrence Yun said in a statement.
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The index increased from April in the Northeast and West by 3.1% and 2.2%, respectively, and fell 1.3% in the Midwest and 1.7% in the South.
On a year-to-year basis, the index increased in: the Northeast, Midwest, South and West by 6.8%, 11.4%, 7.9% and 2.2%, respectively.
The association's Housing Affordability Index fell to171.6 in May, from an upwardly revised 178.8 in April. According to the association, that means a typical household would have to spend 14.6% of their gross income on mortgage principal and interest.
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