After a concerning decline in the pending home sales over the last few months, the National Association of Realtors (NAR) Pending Home Sales Index (PHSI) showed an incline of 5.2%!

Pending home sales reflect contracts that were signed during the 30 day period. As the closing process can take a few months, the Pending Home Sales Index provides a look into the upcoming future of the real estate market.

According to Lawrence Yun, Chief Economist for NAR, Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Feds very accommodative monetary policy, the loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget.

Across the nation the PHSI rose in the Northeast, Midwest, South and the West.