US pending home sales gain 0.8% in February, rising for 3rd month

By Ovunc Kutlu

ISTANBUL (AA) - US pending home sales rose 0.8% in February for a third consecutive month, according to data released Wednesday by the National Association of Realtors (NAR).

The market expectation was for the figure to show a decline of 2.3% after it jumped 8.1% in January.

In December, pending home sales rose 1.1%, ending six consecutive months of a decline.

Annually, however, the figures were down 21.1% year-on-year, according to a NAR statement.

"After nearly a year, the housing sector’s contraction is coming to an end," said Lawrence Yun, the association’s chief economist. "Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months."

"Mortgage rates have improved in recent weeks after the federal government guaranteed the status of most mortgages amidst uncertainty in the financial market. While access to commercial mortgage loans could become increasingly difficult, residential mortgage loans are expected to be more readily available," said Yun.

Pending home sales measure the change in the number of houses under contract to be sold, but still awaiting the transaction. They exclude new home construction. They are considered a forward-looking indicator of home sales based on contract signings.