Pending home sale index surged in August

WASHINGTON, Oct. 8 (UPI) -- Pending U.S. home sales surged higher in August as home-buyers reacted to low prices and affordable mortgage rates, an industry group said Wednesday.

The Pending Home Sales Index for September climbed to 93.4, up 7.4 percent from a revised July index of 87, the National Association of Realtors said

The index reached a 14-month high. In June 2007, the index stood at 101.4, the Association said.

"What we're seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region," NAR Chief Economist Lawrence Yun said in a statement.

The index jumped 18.4 percent in the west to 109.5. It also jumped firmly in the Northeast, up 8.4 percent to 79.8. In the South, the index climbed 2.3 percent. In the Midwest it rose 3.6 percent, the report said.

"August shows some unleashing of pent-up demand before the credit crisis accelerated in September," Yun said.