By Jessica Coacci

The number of homes going under contract in the U.S. rose in February, according to a monthly index. Here are the main takeaways from the National Association of Realtors' report released Tuesday.

-The pending home sales index, a leading indicator of house sales based on contract signings, rose 1.8% on month to 72.1. Economists polled by The Wall Street Journal had forecast a 0.6% decline.

-"The slight gain in pending contracts appears to be driven by improved affordability conditions," said NAR Chief Economist Dr. Lawrence Yun. "However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates," he added.

-Over the month, pending home sales slipped 3.6% in the Northeast region. Meanwhile, homes under contract rose 4.6% in the Midwest, 2.7% in the South and 0.9% in the West.

-Sales decreased year-on-year in the Northeast and Midwest, but increased in the South and West. Northeast pending home sales saw the biggest on-year decline at 12.1%.

-On year, pending home sales fell 0.8% nationwide, the NAR said.

-"For first-time home buyers, purchasing a home is not a snap decision," Yun said. "Still, there is sizable pent-up demand that could be released into the market."

Write to Jessica Coacci at jessica.coacci@wsj.com


(END) Dow Jones Newswires

03-17-26 1014ET