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Pending Home Sales Jump 0.1% in May

 
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    Pending sales of existing homes climbed slightly in June, the National Association of Realtors said Wednesday, marking the fourth consecutive rise in sales activity for the struggling housing market.

    NAR's pending home sales index rose by 0.1% from a reading of 90.6 to a reading of 90.7. While the gain was slight compared to the last three months, it's the longest streak in sales activity since October 2004 – near the height of the housing boom.

    Sales activity based on the index is up 6.7% from a year ago, according to the trade organization. 

    NAR’s report came in mostly as expected, according to estimates provided by Thomson Reuters, with economists expecting flat sales for the month of June.

    “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards,” said NAR’s Chief Economist Lawrence Yun in a statement. 

    The pending home sales index is a gauge of home contracts signed, so with tougher standards to get a mortgage the number of people who will actually close the purchase of a home will be somewhat lower. The index is used as a gauge of future sales activity.

    Regionally, sales in the Northeast rose 3.1% and are 6.8% above a year ago.  In the Midwest, sales slipped 1.3% but remain 11.4% higher from a year ago.  Sales in the South declined 1.7% and remain 7.9% higher than a year ago, and in the West sales were up 2.2% and are up 0.7% above May 2008.