Pending Home Sales Up Strongly in December

Washington, DC, Feb. 3, 2009--The number of new sales contracts on existing homes jumped 6.3% in December as buyers took advantage of lower mortgage rates and falling prices.

The National Association of Realtors pending home sales index rose 6.3% in December and is now up 2.1% compared with a year earlier.

The increase points to a healthy gain in existing-home sales in January and February. The index is based on signed sales contracts, which usually occur a month or two before the sale is closed, when sales are reported in the NAR's existing-home sales report.