Green shoots appear in the US economy as pending home sales jump to decade-high

Pending home sales in the United States surged to near a decade high in April, rising far beyond expectations, another sign that the economy has gained steam during the second quarter.

Pending home sales index, based on contracts signed last month, increased 5.1 pct to 116.3, a level not observed since February 2006, the National Association of Realtors said on Thursday. The increase in pending home sales for March also was revised marginally upward. Overall pending home sales last month were up 4.6 percent from a year ago.

A Reuters poll of economists showed home sales rising by 0.6 pct last month. Contracts turn in to sales after a month or two.

Contracts rose in three of the nation's four regions, with the West reporting an 11.4 pct jump and the South showing a 6.8 pct increase. The Midwest reported a 0.6 pct decline, but pending home sales in that region were still up 2.0 pct from a year ago.

"US housing market activity continue to improve and all indications thus far point to a strong Spring selling season," Barclays said in a research note.