Pending home sales unexpectedly broke a six-month streak of declines in May, climbing 0.7% to a reading of 99.9, according to the National Association of Realtors.

Economists surveyed by Refinitiv were expecting a decline of 3.7%. An index of 100 is equal to the level of contract activity in 2001.

On a regional basis, contract signings jumped 15.4% month over month in the Northeast, increased 0.2% month over month in the South, fell 1.7% month over month in the Midwest and contracted 5% in the Midwest. The figures mark year-over-year declines of 11.9%, 13.8%, 8.8% and 19.8%, respectively. 

Despite May's small gain in pending sales, NAR chief economist Lawrence Yun warns that the housing market is "clearly undergoing a transition." Contract signings fell 13.6% on a year-over-year basis in May, which Yun attributed to "much higher mortgage rates." ... Read More: FOX Business