Signed contracts to buy US homes rise 5.2 percent in July; housing demand still weak

Pending home sales rise 5.2 percent in July

WASHINGTON — The number of buyers who signed contracts to purchase previously occupied homes increased in July but remained well below last year’s levels, a sign that demand for housing remains weak.

The National Association of Realtors says its seasonally adjusted index rose 5.2 percent from a month earlier to a reading of 79.4. Economists surveyed by Thomson Reuters had expected the index would fall to 74.9.

The index was still down 19 percent from the same month last year. June’s reading was the lowest on records dating to 2001. It was revised slightly downward to 75.5.

The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.