U.S. pending home sales are tracking higher than last year, according to the National Association of REALTORS® (NAR).

January pending home sales, or contract signings, were up 5.7 percent compared to a year ago and were 5.2 percent higher than December, NAR announced Thursday with the release of its latest Pending Home Sales Index.

Breaking down just the Midwest region, which includes Illinois, the January pending sales index was 6.5 percent higher than last year and 7.3 percent higher than December.

“This month’s solid activity – the second-highest monthly figure in over two years – is due to the good economic backdrop and exceptionally low mortgage rates,” said Lawrence Yun, NAR’s chief economist in an NAR news release.