The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes signed each month. The index is considered a good future indicator of home sales numbers since signings take place near the beginning of the home buying process and final sales numbers are based on closed transactions, which typically happen weeks later. That means the NAR’s latest release showing contract signings increasing is a good sign sales numbers are about to head higher too. In August, contract signings were up 0.6 percent from the month before. Lawrence Yun, NAR’s chief economist, says the improvement is due to mortgage rates. “A slight upward turn reflects a modest improvement in housing affordability, primarily because mortgage rates descended … in August,” Yun said. “However, contract signings remain near cyclical lows even as home prices keep marching to new record highs.” The Midwest and West saw the biggest improvements in August, while the South was relatively flat and the Northeast declined month-over-month. (source)