Pending home sales rose less than expected in May, but surged to a nine-year high.
Sales rose 0.9% month-over-month to 112.6 on a seasonally-adjusted basis, the highest level since April 2006.
Sales rose 8.3% year-over-year.
Economists had estimated that pending sales rose 1.1% month-over-month, according to Bloomberg. Year-over-year, they forecast an 11.8% rise.
The April reading was revised down to 0.7%.
The data from the National Association of Realtors include transactions in which a contract has been signed, but not yet concluded.
In a note to clients after the release, Barclays economists wrote:
"About 80% of pending home sales will likely turn into existing home sales transaction in the next two months and we see today’s data as suggesting continued rises in existing homes sales in the coming months. In addition, we think they remain supportive of our forecast that residential investment will rebound strongly in Q2."
Via Pantheon Macro, here's the latest chart of the index:
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