U.S. pending home sales surge 1.3% to 111.3 in July, hit near 10-year high

Contracts to buy previously owned U.S. homes surged in July after two straight months of declines as demand rose almost across the board, suggesting the housing market remains on solid ground despite last month’s drop in home resales.

The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, increased 1.3 percent to 111.3, the second highest reading in over a decade.

Pending home contracts become sales after a month or two, and last month’s implied a pickup in home resales after they declined 3.2 percent in July. Economists had forecast pending home sales rising 0.6 percent last month.