Home Sales Increase for 6th Straight Month

More Americans signed sales contracts to buy homes in July than in June, marking the longest streak of monthly increases on record.

The pending home sales index from the National Association of Realtors rose 3.2% in July after rising by 3.6% in June. That's 12% higher than July 2008, and it marks the sixth straight increase since record-keeping began in 2001.

Signed real estate contracts often take many weeks or months to complete, so they are considered a forward-looking indicator.

Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit which passed earlier this year as part of the economic stimulus package, and is worth 10% of the home purchase price up to $8,000. People who have not owned a home in the previous three years are eligible for the credit.

The pending home sales index is broken down by regions. The West soared above the rest, jumping 12.1% in July, while the South saw pending home sales activity rise 3.1% for the month.

In the Northeast, activity fell 3%, and in the Midwest saw a decline of 2%.