AlQa'dah 2, 1435, Aug 28, 2014, SPA -- More Americans signed contracts to buy homes in July, the National Association of Realtors said Thursday, providing a sign that buying has improved. The association said that its seasonally adjusted pending home sales index rose 3.3 percent to 105.9 last month, yet the index remains 2.1 percent below its level a year ago. The pressures that caused home sales to stall last year have begun to ease. The average 30-year fixed mortgage rate has dropped to 4.1 percent, a 52-week low. Prices are no longer rising at double-digit annual rates, thereby helping to improve affordability. Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale. The number of signed contracts in the Northeast climbed 6.2 percent and is ahead of its pace last year. Pending sales also rose in the South and West, though the index for both regions remains below its levels in July 2013. Contracts in the Midwest fell 0.4 percent last month and also lag behind the pace of a year ago. Modest wage growth, which has barely run ahead of inflation, has hampered home sales. The association forecasts that roughly 5 million existing homes will be sold this year, down from 5.1 million in 2013. However, price growth, which had hurt affordability at the end of last year, has moderated in recent months.
