Pending home sales soared much higher than what was expected by economists in March of 2010, according to the National Association of Realtors (NAR). Rising 5.3%; a full 1.3% higher than economists were expecting, to an reading of 102.9 in a month to month comparison. This marks the highest level since October of 2009 as well as showing a 21% increase in an annual comparison.

Analysts believe that it was a combination of the expiration of the FED Program in March as well as the upcoming expiration of the Homebuyer Tax Credit in April that sent potential homebuyers scrambling to get in on the Government incentives before their chance was lost. These same analysts are convinced that sales will drop significantly in the upcoming months with the threat of rising mortgage rates and foreclosures.

The FED has left the door open to the program that pumped $1.25 billion into mortgage backed securities keeping the mortgage rates at or around 5% if the economy begins to show signs of weakening.