Pending home sales climbed 3.4% month-over-month in March, and were down 7.4% year-over-year.
This beat expectations for a 1% mum rise amd a 10.3% YoY fall.
Meanwhile, February’s reading was revised up to reflect a more modest 0.5% monthly fall, and a 10% YoY fall.
The index is considered to be a leading indicator for future existing home sales.
Existing home sales have been down 7.5% compared to a year ago, and the pace of sales is the slowest since June 2012.
Higher mortgage rates, stricter lending conditions and the severe winter have weighed on the housing market. Many expect that the weakness in the housing market could be temporary.