Pending Home Sales up Slightly

The number of existing homes put under contract ticked up in February after hitting historic lows the previous month.

The National Association of Realtors reported that its monthly Pending Home Sales Index rose 2.1% to 82.1 from 80.4 in January.

Housing affordability hit a record high in February. NAR's Housing Affordability Index jumped 0.9 percentage points to 173.5 in February, which is up 36.3 percentage points from a year ago. To determine affordability, the HAI incorporates the relationship between home prices, mortgage interest rates and family income.

With the positive housing stimulus incentives now in place, it is expected that home sales will gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory.

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