When a home buyer makes an offer and the seller accepts, that home’s sale is considered pending until the sale closes weeks later. The National Association of Realtors tracks pending home sales because they’re considered a good future indicator of where next month’s sales data is headed, since most pending sales end up successfully closed. That’s why the NAR’s Pending Home Sales Index for May is an encouraging sign. The index found signed offers up 3.8 percent month-over-month and up nearly 5 percent from last year at the same time. Dr. Lawrence Yun, NAR’s chief economist, says the late spring bump is a sign demand is high. “A late spring buyer rush – even with mortgage rates not budging – is an indication of pent-up housing demand …” Yun said. “Going forward, falling oil prices will help lower mortgage rates. But declines will be modest given sizable borrowing by the federal government and strong AI investment spending by tech companies.” (source)
