Pending home resale index climbs 3.6%, most in 13 months


June 05, 2005|By Bloomberg News

Contracts to buy previously owned homes rose in April by the most in 13 months as falling borrowing costs, rising job creation and speculative purchases drove demand.

The index of signed purchase agreements, or pending home resales, rose 3.6 percent to 128.2, a record, after a revised gain of 0.4 percent in March, the National Association of Realtors reported. March sales were originally estimated to have fallen 0.3 percent. The index averaged 120.6 last year.

Sales of new and previously owned homes set records in April, continuing a housing surge that shows no sign of slowing.

"The rise in sales contracts results from declining mortgage interest rates," David Lereah, chief economist of the Realtors group, said. "Home sales were expected to be tapering this year, but the index tells us that historic home sales are likely to continue."

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