The National Association of Realtors (NAR) released its pending home sales figures for the U.S. on Monday. Pending home sales in the U.S. climbed 3.5% in February, exceeding expectations for a 1.0% gain, after a 3.0% drop in January. January's figure was revised down from a 2.5% decline.

The increase was mainly driven by a rise in the Midwest.

"After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory," the NAR's chief economist Lawrence Yun said.

"Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what's being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau," he added.