Washington CNN  —  Home sales based on contract signings jumped in March despite elevated mortgage rates that month. Pending home sales — a forward-looking indicator based on contract signings rather than closings — climbed 3.4% in March, the National Association of Realtors reported Thursday, which was “the best performance in a year,” according to a release. That was well above the 0.3% forecast by economists, according to a FactSet poll. Contract signings rose across the country in March from the prior month, except in the Midwest. Despite the March gain, pending home sales are still “in a fairly narrow range over the last 12 months without a measurable breakout,” NAR’s chief economist, Lawrence Yun, said in a release. “Meaningful gains will only occur with declining mortgage rates and rising inventory.” The broader US housing market began the year with some momentum, as home sales climbed, homebuilder sentiment improved and traders priced in several interest rate cuts this year. Now, the narrative has shifted. Existing home sales, which make up the vast majority of the housing market, plunged in March. Hotter-than-expected inflation readings in recent months are now keeping the Federal Reserve from cutting interest rates anytime soon. That has sent bond yields soaring. The average 30-year fixed-rate mortgage, which tracks the 10-year US Treasury yield, surged past 7% last week, and economists aren’t expecting rates to fall meaningfully this year. This story is developing and will be updated.