After reporting a steep drop in U.S. pending home sales in the previous month, the National Association of Realtors released a report on Wednesday showing pending sales rebounded by much more than anticipated in the month of January.
NAR said its pending home sales index spiked by 4.6 percent to 103.2 in January after tumbling by 2.3 percent to a downwardly revised 98.7 in December.
Economists had expected pending home sales to rise by 0.4 percent compared to the 2.2 percent slump originally reported for the previous month.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
"A change in Federal Reserve policy and the reopening of the government were very beneficial to the market," said NAR chief economist Lawrence Yun.
He added, "Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers."
Despite the monthly increase, pending home sales in January were down by 2.3 percent compared to the same month a year ago.
NAR said three of the four major regions of the country experienced a decline compared to a year ago, while the Northeast enjoyed a slight growth spurt.
Looking ahead, Yun said the positive pending home sales figures in January are likely to continue, noting, "Income is rising faster than home prices in many areas and mortgage rates look to remain steady."
Next Tuesday, the Commerce Department is scheduled to release government shutdown-delayed data on new home sales in the month of December.
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Forex News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.