Feb pending home sales surge to 10-month high

Washington

CONTRACTS to buy previously owned US homes jumped to a 10-month high in February, pointing to robust demand for housing ahead of the spring selling season despite higher prices and mortgage rates.

The National Association of Realtors said on Wednesday that its Pending Home Sales Index, based on contracts signed last month, surged 5.5 per cent to 112.3, the highest reading since April. It was also the second-best reading since May 2006.