The number of Americans signing contracts to buy previously owned homes unexpectedly rose in February, reinforcing signs that the housing slump in its fourth year may be near a bottom. The index of signed purchase agreements, or pending home resales, gained 2.1 percent to 82.1, from 80.4 in January, the National Association of Realtors said today in Washington. The February reading was 1.4 percent lower than the 83.3 level in the same month a year earlier. Foreclosure-driven declines in prices and lower mortgage rates will lure more buyers and help trim the property glut, easing the drag from the housing recession. Economists project the downturn may ease as efforts to thaw credit and offer tax breaks to first-time buyers begin to take hold. “The sharp decline in prices is helping to improve affordability,” Joseph Brusuelas, a director at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “There are small signs that the housing market is moving toward stability.” Pending sales were estimated to be unchanged after an originally reported drop of 7.7 percent in January, according to the median forecast of 37 economists in a Bloomberg News survey. Estimates ranged from a drop of 3 percent to a gain of 5.6 percent. Pending resales are considered a leading indicator because they track contract signings. The Realtors’ existing-home sales report tallies closings, which typically occur a month or two later. The Realtors group, whose pending sales data go back to January 2001, started publishing the index in March 2005. West Slumps Three of four regions saw an increase in pending sales, today’s report showed. Pending resales jumped 14.5 percent in the Midwest, gained 10.6 percent in the Northeast and rose 4.4 percent in the South. The West registered a 13.5 percent drop, it showed. Figures released last week helped lift some of the gloom surrounding housing. Sales of previously owned homes, which account for about 90 percent of the market, rose 5.1 percent in February, and new-home purchases, which make up the rest, increased 4.7 percent from a record low level the prior month. The median price for existing houses had the biggest year- over-year drop on record, while new-home values also plummeted, last week’s reports showed. Home prices in 20 U.S. cities plummeted 19 percent in January from a year earlier, the fastest drop on record, the S&P/Case-Shiller home-price index showed yesterday. The gauge has fallen every month since January 2007, and year-over-year records began in 2001. Lower Rates The interest rate on a 30-year fixed mortgage loan fell below 5 percent in February and has declined further since, reaching 4.61 percent last week, according to the Mortgage Bankers Association. Still, there are few signs of an end to foreclosures, which surged 29.9 percent in February from a year earlier, according to RealtyTrac Inc. Builders are hurting as foreclosed properties get returned to the market at cheaper prices, competing with new houses. Lennar Corp., the fourth biggest U.S. homebuilder by revenue, posted a wider loss in the first quarter ended Feb. 28. Recently, there are signs of stability, the Miami-based company said. “Lower rates together with seasonal trends have clearly moved sales higher in the past few weeks,” Lennar Chief Executive Officer Stuart Miller said on a conference call with analysts yesterday.

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