The U.S. housing market received some good news on Thursday as the National Association of Realtors (NAR) reported that pending home sales jumped in October, showing a positive upward trend since hitting bottom in June.
The pending home sales index rose 10.4% to a level of 89.3 based on contracts signed in October from 80.9 in September, according to an NAR news release.
Pending home sales in June were notably lower in contrast to a spring 2010 surge when buyers rushed to take advantage of the home buyer tax credit. The NAR's pending home sales index in June dropped 2.6% to a reading of 75.7 based on contracts signed from 77.7 in May, and was 18.6% below June 2009.
However, the index currently remains 20.5% below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.