Offers to purchase homes rose across the nation in August. When these sales close the cash that flows upon completion may give the US economy a little pick up compared to if the sales had been flat.
Nationwide pending home sales rose 7.4 percent in August
Economists had forecast slight drop
Associated Press
October 9, 2008
WASHINGTON – Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.
The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.
A major unknown is how the worldwide financial crisis and economic slump will affect the housing market.
Despite numerous efforts by the Federal Reserve to encourage banks to lend more, lenders have kept tight reins on mortgage lending, and average rates on 30-year mortgages have remained over 6 percent for most of the year.
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