August pending home sales rise to 2 1/2 year high

WASHINGTON — The volume of signed contracts to buy previously occupied homes rose for the seventh straight month in August as buyers rushed to take advantage of a tax credit for first-time owners that expires at the end of November.

The National Association of Realtors says its seasonally adjusted index of sales agreements rose 6.4 percent from July to 103.8. It was the highest since March 2007 and 12 percent above a year ago. Economists surveyed by Thomson Reuters expected the index would rise to 98.6.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of future sales. However, new rules for home appraisals and rigid lending standards have scuttled many sales agreements recently.