Pending Home Sales Index (PHSI)

kkThe pending home sale index was  created by the National Association of Realtors (NAR) and tracks homes sales in which a contract is signed but the sale has not yet closed.

It is a leading indicator of future existing home sales; an increase in the index, and thus housing demands, infers that people are more in a position to make mortgage payments.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined.

 

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