Pending home sales rise again

Pending home sales rose in December, the fifth time in six months the index has increased, according to the National Association of Realtors.

The Pending Home Sales Index went up 2% to 93.7, based on contracts signed in December. That figure is up from 91.9 in November, but down from December 2009, when it was 97.8. Lawrence Yun, the NAR’s chief economist, gave credit to the improving economy and good affordability.

“Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions,” he said. “Mortgage rates should rise only modestly in the months ahead, so we’ll continue to see a favorable environment for buyers with good credit.”