NAR: Pending Home Sales Index Gains 3.3% to 105.9 in July

Pending home sales grew 3.3% to an index reading of 105.9 in July, after a revised 1.3% decline to 102.5 in June, according to a report released Thursday by the National Association of Realtors.

The June reading was first reported as a 1.1% decrease to 102.7.

Economists polled by Thomson Reuters predicted that the index would be up 0.6%

An index of 100 is equal to the average level of contract activity during 2001.

Year-over-year the pending homes sales index is off 2.1% from last July, when the index was 108.2.

Regionally, pending sales were mostly higher. The Northeast saw a 6.2% gain to 89.2, while sales slid 0.4% in the Midwest to 104.6. In the South, sales rose 4.2% to 119.0, and sales gained 4.0% to 99.5 in the West.

"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," NAR Chief Economist Lawrence Yun said. "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."

Yun added, "More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market."

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