US August Pending Home Sales Jump 7.4% pct

Source : The Business Times, October 8, 2008

NEW YORK - Pending sales of existing US homes unexpectedly jumped in August to the highest level in over a year, data from a real estate trade group showed on Wednesday.

The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 per cent in August to 93.4 from an updwardly revised index of 87.0 in July.

The August reading was 8.8 per cent higher than a year earlier, and the highest level since 101.4 in June 2007.

Economists polled by Reuters ahead of the report were expecting pending home sales to drop by 1.8 per cent.

The association's senior economist, Lawrence Yun, said home buyers responded to improved affordability, with home prices low and mortgage rates down after the government takeover of Fannie Mae and Freddie Mac. -- REUTERS