Pending home sales jumped 3.3% in July after falling by 1.3% in June.
Economists were expecting a modest 0.5% pace of growth.
“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,” said Lawrence Yun of the National Association of Realtors. “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.
“More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”
Sales jumped in the Northeast, South, and West. However, sales declined by 0.4% in the Midwest.
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