U.S. Pending Home Sales Index Rose 1.3% in July

WASHINGTON—A measure of homes under contract for sale rose in July, a sign of steady demand amid low interest rates and rising employment.

The National Association of Realtors' pending home sales index, which tracks contract signings for purchases of previously owned homes, increased a seasonally adjusted 1.3% to 111.3 in July, the trade group said Wednesday. Sales then typically close within a month or two of the signing.

Economists surveyed by The Wall Street Journal had expected a 0.7% rise.

The index had registered at a downwardly revised 109.9 in June. It reached a post-housing bust peak of 115.0 in April and now sits at the second-highest level of 2016.

July's reading was 1.4% above its year-ago level.

"More home shoppers having success is good news for the housing market heading into the fall, but buyers still have few choices and little time before deciding to make an offer on a home available for sale," said Lawrence Yun, NAR's chief economist.

News Corp., owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors.

Pending sales were up in July across most of the country. In the Northeast the index rose 0.8% to 96.8, in the South it was up 0.8% to 123.9 and in the West it jumped 7.3% to 108.7.

Pending sales fell in the Midwest. The index for the region decreased 2.9% to 105.8 in July.

Write to Jeffrey Sparshott at [e-mail]

(END) Dow Jones Newswires

August 31, 2016 10:25 ET (14:25 GMT)

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