the number of houses going under contract in the us rose in january for a second consecutive month suggesting the low point of the current housing market downturn could have passed here are the main takeaways from the national association of realtors report released monday the pending home sales index a leading indicator of home sales based on contract signings rose 81 to 825 in january this is the largest monthly increase since june 2020 economists polled by the wall street journal expected the index to increase by a marginal 09 despite recent gains pending home sales declined by a sharp 241 compared with the same month a year earlier buyers responded to better affordability from falling mortgage rates in december and january said lawrence yun nars chief economist home sales activity looks to be bottoming out in the first quarter with incremental improvements expected afterward he said still annual gains in home sales wont occur until 2024 mr yun said pending home sales increased in all four major us regions in january transactions rose 101 on month in the west followed by an 83 increase in the south a 79 rise in the midwest and a 6 increase in the northeast