NEW YORK (TheStreet) -- An index that measures the number of contracts to buy previously-owned homes in the U.S. rose 5.2% in July, better than expected, with gains in all four regions.
The National Association of Realtors said Thursday morning that its index of pending home sales, which tracks signed sales contracts, rose 5.2%. Economists had expected the index to fall by 1.1% to a reading of 74.9, from 75.7 in June.
Signed contracts, or pending-home sales, are considered a good barometer of future existing-home sales. There is typically a one- to two-month delay from when contracts are signed and home sales are closed.
The housing market saw sales ramp up in March and April as consumers rushed to take advantage of tax credits that offered as much as $8,000 for first-time homebuyers and $6,500 for repeat buyers. Following the expiration of those credits on April 30, the market saw a dramatic decline in demand for the month of May that spilled over into June. Data for July showed a further drop in demand. Lawmakers later extended the deadline to close on a home purchase and still qualify for the tax credit to Sept. 30.
