(Sharecast News) - US pending home sales rose much more than expected in August, according to data released on Monday by the National Association of Realtors.
Pending home sales grew 4% on the month, taking the index to 74.7. This was comfortably ahead of expectations of 0.2% growth.

On the year, pending home sales were up 3.8%.

NAR chief economist Lawrence Yun said: "Lower mortgage rates are enabling more home buyers to go under contract.

"In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions."

The index for the Northeast fell 1.1% on the month to 63.7, while the index for the Midwest rose 8.7% to 76.4. The index for the South was 3.1% higher month-on-month in August at 88.9, while the index for the West rose 5% to 59.3.

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