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US Pending Home Sales Edge Higher But Still Reel From Rate Rise

  • Contract signings edged up 0.7% in May, ending six-month drop
  • Sales from a year earlier were down 12% amid higher mortgages
A home under construction in Sumter, South Carolina.

A home under construction in Sumter, South Carolina.

Photographer: Micah Green/Bloomberg
Updated on

A gauge of US pending home sales unexpectedly rose in May for the first time in seven months, a mere respite in an otherwise downward trend for housing as mortgage rates climb.

The National Association of Realtors’ index of pending home sales increased 0.7% from a month earlier to 99.9, according to data released Monday. An index of 100 is equal to the level of contract activity in 2001. Economists in a Bloomberg survey called for a 4% drop, per the median forecast.