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[Gene GeRue <genegerue AT ruralize.com>]

Pending home sales index rises 7.4% in August: NAR
By Ruth Mantell, MarketWatch
Last update: 10:18 a.m. EDT Oct. 8, 2008Comments: 76
WASHINGTON (MarketWatch) -- Despite the credit crunch gripping the  
U.S. economy, the National Association of Realtors reported Wednesday  
that an index of sales contracts on previously owned homes rose 7.4%  
in August from the prior month.
The index, considered a leading indicator of existing-home sales, was  
up 8.8% from August 2007. It's unclear to what extent contract  
activity will be affected by the credit disruptions on Wall Street,  
said Lawrence Yun, NAR's chief economist, in a statement.
Pending home sales for August rose in all four of the regions tracked  
by the NAR.
Gains amounted to 18.4% in the West, 8.4% in the Northeast, 3.6% in  
the Midwest and 2.3% in the South.
July's pending home sales index was revised to a decline of 2.7% from  
a prior estimate of a 3.2% decrease.
NAR says pending home-sales activity rose because of buyers taking  
advantage of low prices and affordable interest rates. August's  
results show an "unleashing of pent-up demand" before the credit  
crisis worsened in September, Yun said.
"Home buyers in July were hampered by overly stringent lending  
criteria in the months before the government takeover" of Fannie Mae  
and Freddie Mac, Yun said.
Also Wednesday, the world's major central banks moved in concert to  
slash key interest rates, easing monetary policy in an ongoing  
struggle to head off financial turmoil that has threatened to flatten  
the international economy. See full story.
The coordinated rate moves saw the Federal Reserve cut its key lending  
rate by half a percentage point, to 1.5%.
In addition, the European Central Bank trimmed its key refi rate to  
3.75% from 4.25%, while the Bank of England cut its key rate to 4.5%  
from 5%. The Bank of Canada, the Swiss National Bank and the Swedish  
Riksbank cut rates as well.
Ruth Mantell is a MarketWatch reporter based in Washington.