July pending home contracts surge after falling 2 months in a row

Washington

CONTRACTS to buy previously owned US homes surged in July after two straight months of declines as demand rose almost across the board, suggesting the housing market remains on solid ground despite last month's drop in home resales.

The National Association of Realtors (NAR) said on Wednesday that its Pending Home Sales Index, based on contracts signed last month, increased 1.3 per cent to 111.3, the second-highest reading in over a decade.