Pending home sales grew in February for the third consecutive month, according to the National Association of REALTORS®. Three U.S. regions posted monthly gains, while the West declined. All four regions saw year-over-year decreases in transactions. The Pending Home Sales Index (PHSI)* — a forward-looking indicator of home sales based on contract signings — improved 0.8% to 83.2 in February. Year-over-year, pending transactions dropped by 21.1%. An index of 100 is equal to the level of contract activity in 2001. “After nearly a year, the housing sector’s contraction is coming to an end,” said NAR Chief Economist ... (full story)

Higher mortgage rates took some of the juice out of the housing recovery in February. After a sharp gain in January, pending home sales rose just 0.8% month to month, according to the National Association of Realtors. Sales were 21.1% lower than February last year. Pending sales are based on signed contracts during the month. Mortgage rates shot higher in February after dropping sharply in January. The average rate on the popular 30-year fixed mortgage started February right around 6% and ended the month just over 7%, according to Mortgage News Daily. That gave homebuyers considerably less purchasing power. ... (full story)