August Pending Home Sales Higher Than Expected

Washington, DC, Oct. 1, 2009--Pending home sales in the U.S. increased more than forecast in August, reinforcing signs of a rebound in housing, industry figures showed today.

The index of signed purchase agreements, or pending home sales, rose 6.4 percent after a 3.2 percent gain in July, the National Association of Realtors announced in Washington. The gain was the seventh in a row. Compared with a year earlier, pending sales rose 12.4 percent.

Declining home prices, low mortgages rates and government stimulus programs have helped end the housing-market meltdown that sparked the financial crisis. Federal Reserve policy makers last week committed to buy full amount of a $1.25 trillion mortgage-backed securities program and extended the end-date by three months.

Pending home sales were projected to increase 1 percent in August, according to economists.

By region, pending sales rose 16 percent in the West, 8 percent in the Northeast and 3 percent in the Midwest. They gained 0.8 percent in the South from the prior month.