Contracts to buy previously owned homes rose in June, according to data released on Monday by the National Association of Realtors (NAR).
NAR said its pending home sales index, which measures signed contracts for homes where transactions have not yet closed, increased 0.9% to a reading of 106.9 after falling by 0.5% in the previous month.
Economists had forecast pending home sales rising just 0.4% last month.
Despite last month’s increase, contract signings are still down 2.5% on an annual basis.
“The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates,” NAR chief economist Larry Yun said, noting that inventory is still subpar and not meeting demand.
“As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year’s pace,” he explained.