WASHINGTON, D.C.: More people signed contracts to buy previously owned homes in the U.S. in March than in any month in over a year, helped by lower mortgage rates.

The National Association of Realtors (NAR) said its Pending Home Sales Index, which tracks signed contracts, rose by 6.1 percent to 76.5. This was the most significant jump since December 2023.

Experts had expected only a 1.0 percent increase. However, the number of pending sales was still 0.6 percent lower than the same time last year.

NAR’s chief economist, Lawrence Yun, said buyers react quickly to even small changes in mortgage rates. He added that the rise in signed contracts suggests many people are ready to buy, thanks to steady job growth.

Mortgage rates dropped to 6.65 percent in March, down from 7.04 percent in mid-January, according to Freddie Mac.