Yahoo Finance
Home contract signings picked up in May, the latest sign that homebuyers shrugged aside concerns about high mortgage rates and elevated inflation this spring.
The Pending Home Sales Index rose 4.8% from a year earlier in May, and was up 3.8% month over month, according to National Association of Realtors figures released on Wednesday.
Sales were up from last year in all parts of the country, led by a 9.3% jump in the Midwest, which homebuyers have sought out for its relative affordability compared to places like the Northeast.
"A late spring buyer rush — even with mortgage rates not budging — is an indication of pent-up housing demand and consumers' acceptance of above-6% mortgage rates as the new normal," NAR chief economist Lawrence Yun said in a statement.
Read more:How to get the lowest mortgage rates right now Mortgage rates held around 6.4% to 6.5% through most of May asinflation surged.
While housing economists were initially concerned that inflation and the war in Iran would sideline buyers during the traditional busy spring homebuying season, so far home sales are tracking ahead of last year, following a3.2% increasein May.
Homes typically go under contract a month or two before they're sold, making pending home sales an early indication of future sales activity.
Claire Bostonis a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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