Home buying contracts hit highest level in year - KWWL - Eastern Iowa Breaking News, Weather, Closings

Home buying contracts hit highest level in year


The number of Americans who signed contracts to buy homes jumped in October to the highest level in a year.  But the gain follows three months of declines and isn't enough to signal a housing recovery.

The National Association of Realtors says its index of sales agreements rose 10.4 percent last month to a reading of 93.3.

A reading of 100 is considered healthy.  The last time it was that high was in April 2010, one month before a federal home-buying tax credit expired.

Contract signings usually indicate where the housing market is headed.  There's typically a one- to two-month lag between a signed contract and a completed deal.  But a growing number of buyers have canceled contracts after appraisals showed the homes were worth less than the bid.

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