Pending home sales jumped 3.3 percent in July after falling by 1.3 percent in June. Economists were expecting a modest 0.5 percent pace of growth.
“Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” said Lawrence Yun of the National Association of Realtors. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”
“More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”
Sales jumped in the Northeast, South and West. Sales declined by 0.4 percent in the Midwest, however.
“The pending home sales index has now risen in four of the past five months and suggests further momentum is in store for existing home sales over the next 1-2 months,” said Barclays’ Michael Gapen.