In what may come as a surprise to those who use construction equipment to produce houses, July saw an increase in pending home sales.
According to the National Association of Realtors, the number of contracts signed during the month increased 5.2 percent when compared to June. However, when compared to July of last year, pending home sales were down 19.1 percent.
NAR chief economist Lawrence Yun warned, however, that recovery in the housing market would be a long process, although improved conditions for consumers may prompt more people to buy.
"Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers," Yun said.
Low interest rates on mortgages may be one of the factors that help drive consumers to buy. A recent report from the Mortgage Bankers Association noted that average contract interest on a 30-year fixed home loan hit a low never seen before by the organization.
During the week ending on August 27, the rate for that type of mortgage dropped to 4.43 percent.
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