August Pending Home Sales Higher Than Expected

Washington, DC, Oct. 4, 2010--Pending home sales rose a higher than expected 4.3% in August, according to the National Association of Realtors.

Economists were expecting a 2.9% increase.

Lawrence Yun, NAR chief economist, said the latest data is consistent with a gradual improvement in home sales in upcoming months.

"Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market," he said. "However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence."

Although Yun expects a continuing steady rise in home sales from favorable affordability conditions and some job creation, he said any sudden rise in mortgage rates could slow the recovery.