Pending home sales in the United States increased by 1.6% in February compared to the previous month, the National Association of Realtors (NAR) said on Thursday.

The Pending Home Sales Index (PHSI) rose to 75.6, marking a 7.0% decrease from the previous year. The Northeast PHSI decreased 0.3% from last month to 63.4, and the South PHSI rose 1.1% to 89.5, down 8.5% from a year earlier.

“While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” stated NAR Chief Economist Lawrence Yun. “Ongoing job gains are clearly increasing demand along with more inventory.”