Dive Brief:

• Continuing a four-month streak, pending home sales increased in April, according to the National Association of Realtors.
• The Pending Home Sales Index reached 112.4 this month; it was 108.7 in March. Steady gains in contract activity indicates strong buyer demand, said Lawrence Yun, NAR chief economist.  
• All four regions contributed, but deals in the Northeast and Midwest, which had been greatly impacted by weather, made major gains.

Dive Insight:

Although April saw a drop in existing home sales, Yun said to expect a summer rebound. That bounce is tied to a boost in inventory and moderate price growth. The interest rate which had been enticing buyers is now starting to increase.

"The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers — especially first-time buyers — are able to obtain a mortgage," Yun said.