Contract signings to purchase previously owned homes surged in May by the most on record as mortgage rates fell and some states began to reopen from coronavirus lockdowns.
The National Association of Realtors'
The advance adds to signs the residential real estate market is snapping back faster than most of the economy after the typically robust spring home-selling season was interrupted amid the shutdowns. Mortgage rates have dropped to the lowest on record, helping to stabilize demand though the industry may be challenged by high unemployment and lingering health concerns.
"The outlook has significantly improved," Lawrence Yun, NAR's chief economist, said in a statement.
The Realtors project existing home sales to reach 4.93 million units this year, up from a previous forecast of 4.77 million. Last year, there were more than 5.3 million previously owned homes sold.
An S&P homebuilders index advanced 1% in early trading on Monday after the Realtors data.
Some government officials began easing their restrictions on business in May. With coronavirus cases increasing in states including Texas, California and Florida, some locations are putting a pause on lockdowns. Still,
Pending home sales rebounded sharply in all U.S. regions, including a 56.2% monthly jump in the West and a 43.3% gain in the South.