Pending home sales jump to nine-year high

The pending home sales index rose more than expected and climbed to the highest level in nine years in April.

According to the National Association of Realtors, sales rose 3.4% month-over-month, and 13.4% year-over-year.

The index climbed to 112.4, the highest level since May 2006.

Economists had forecast that sales, based on contracts for previously owned homes, rose 0.9% month-over-month, and 10.9% year-over-year, according to Bloomberg.

In March, pending home sales crushed expectations, rising 1.1% from the previous month, and 13.4% year-over-year.

NAR chief economist Lawrence Yun wrote in the release: "Realtors are saying foot traffic remains elevated this spring despite limited - and in some cases severe - inventory shortages in many metro areas," he said. "Homeowners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale."

More to come ...