Home Sales Index Hits Record

The Pending Home Sales Index, a leading indicator for the housing market, has risen to the highest level on record, according to the National Association of Realtors.Based on data collected for April, the index stands at 128.2, which is 3.6% higher than March and 9.2% higher than in April of 2004, the NAR said. The previous record reading was 128.1 in October of 2004. The index is based on pending sales of existing homes, including single-family and condominium properties. A sale is pending when a contract is signed but the transaction has yet to close. David Lereah, NAR's chief economist, said the index shows that record levels of home sales are possible for May and June. "Although the record we set for existing home sales in April was a bit of a surprise, the rise in sales contracts results from declining mortgage interest rates," he said in an NAR news release.