Home contract signings rose in April as some buyers shake off higher mortgage rates

Home contract signings rose 1.4% in April, a sign that buying activity is chugging along despite elevated mortgage rates and low consumer confidence.

The National Association of Realtors Pending Home Sales Index, which measures housing contract activity, rose 3.2% from a year earlier. Contract signings were up year over year in every part of the country except the Northeast and rose from March to April in all regions except the South.

“Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates,” NAR chief economist Lawrence Yun said in a statement.

Read more: How to get the lowest mortgage rates right now

Earlier this year, housing economists were optimistic that improved affordability conditions would lead to a stronger spring homebuying season, following multiple years of sales activity around 30-year lows.

But higher mortgage rates and inflation concerns stemming from the Iran war have threatened that narrative. Completed home sales in April were unchanged from a year earlier, according to NAR data released last week.

Homes typically go under contract a month or two before they’re sold, making pending home sales an earlier indicator of future sales activity.

Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.

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