Uptrend Continues in Pending Home Sales

Pending home sales are up for the fifth consecutive month. NAR's forward–looking Pending Home Sales Index for June indicates signed contracts rose 3.6 percent to an index level of 94.6 from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was in July 2003. "Historically low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who've been on the sidelines," says Lawrence Yun, NAR chief economist. "Activity has been consistently much stronger for lower priced homes." Yun says households thinking about buying should act soon to take advantage of the $8,000 tax credit for first-time buyers, because they must close on the sale by November 30, which is when the credit expires. Watch and link to a video interview with Yun on the latest index reading