US Pending Home Sales Rise 1.6% In February

US pending home sales rose 1.6% in February, compared to the previous month, according to data released Thursday by the National Association of Realtors (NAR).

The figure came higher than the market expectation of a 1.4% increase, after plummeting 4.7% in January.

The pending home sales index, which is a forward-looking indicator of home sales based on contract signings, rose to 75.6 in February, from 74.4 in January.

"Ongoing job gains are clearly increasing demand along with more inventory," said Lawrence Yun, the association's chief economist. "While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year."

On an annual basis, however, pending transactions were down 7% in February, compared to the same month of the last year.

Pending home sales declined in all US regions compared to a year ago, the NAR said in its statement.

"Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers," said Yun. "The high-cost regions in the Northeast and West experienced pullbacks due to affordability challenges."

Pending home sales measure the change in the number of houses under contract to be sold but still awaiting transaction. It excludes new home construction. -