Unexpected Increase in Pending Home Sales In July

Pending homes sales increased in July from a record low, indicating the market may be steadying after the cessation of the federal tax credit program.  The National Association of Realtors released figures showin that their index of purchase contracts rose 5.2%.

This news came at the same time that reports show that unemployment claims have decreased and factory orders are on the rise, which have diminished fears that the economy is tipping back into a double-dip recession.

Bloomberg News states that this favorable market data supports Fed Chairman Ben Bernanke's scenario for a "modest" pace of growth in the 2nd half of 2010.