Economy, Home Sales | featured news

Builders' mood gloomy; small gains come after worst summer for home sales in a decade

The number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace.

Sales of U.S. homes rose 7.6% in August -- recovering from their steep descent in July, when the end of a popular government stimulus program drove sales to their lowest levels in more than a decade.

Buying activity in the residential real estate market slowed dramatically in July, according to a report released Tuesday by the National Association of Realtors. The dramatic plunge is yet another sign the U.S. economy may be heading toward a slowdown or double-dip recession.

The stock market rebounded Wednesday after a stronger-than-expected increase in pending home sales restored investors' optimism about the economy.

New home sales soared in April as homebuyers rushed to claim the tax credit that expired at the end of the month.

Home sales surpassed expectations for April as government incentives provided a temporary boost to the housing market.

Home sales rose sharply last month and claims for jobless benefits fell last week. The two reports Thursday sketched a picture of a modestly improving economy.

The wobbly housing market is showing a rare sign of strength: pending home sales were up significantly in February, a report released Monday said, suggesting that Americans took advantage of a tax credit for home buyers.

The recovery may have gotten off to a slow start in the third quarter, but a surge in sales of existing homes in November could presage a more robust end to the year.