U.S. home sales contracts signed in June unexpectedly rose across the country, but still were well below year-earlier levels, a real estate trade group said Thursday.

The National Association of Realtors said its Pending Home Sales Index, which is based on contracts signed in June, was up 5.3 percent to 89.0 from a downwardly revised 84.5 in May.

It was the highest reading for the index since October, when it was at 89.8.

The pickup in June signings was sharply contrary to forecasts by economists polled by Reuters who had expected home sales contract signings to decline 1 percent.

The association's senior economist, Lawrence Yun, said the swings in monthly signings "indicates a housing market in transition" but it nonetheless was encouraging.

This is very misleading data, pending does not mean sold, this is just a feel good index that does not reflect reality.

 I absolutely agree; much like the labor data showing unemployment is contained

Thanks for the info.

 helen879 don't you ever have a comment other then thanks for the info.

I HAVE A FRIEND THAT'S A FINANCIAL BROKER AND I SAW HIM AT A GET-TOGETHER I WAS AT A COUPLE WEEKS AGO AND HE SAID THAT FOR THE PAST COUPLE MONTHS THINGS HAVE BEEN PICKING UP AND GETTING BETTER.  NOW KEEP IN MIND WE ARE IN CLEVELAND, OHIO SO I DON'T KNOW WHAT IT'S LIKE IN OTHER PARTS OF THE COUNTRY.

very true...time will tell!

with this economy you can never be certain of anything

I SURE HOPE THERE'S A BIG BOOST IN THE HOUSING MARKET SOON BUT WITH WINTER JUST AROUND THE CORNER I DON'T KNOW IF THAT WILL HAPPEN.  PEOPLE USED TO BUY HOUSES SO THEY'D BE IN THEM FOR FALL SO THE KIDS WOULD BE READY TO START A NEW SCHOOL.  NOW IT'S ANYBODY'S GUESS AS TO WHAT'S GOING ON.  ALL THE RULES HAVE CHANGED AND MONEY IS TIGHT SO WE WILL HAVE TO WAIT AND SEE HOW THIS YEAR PLAYS OUT IN THE REAL ESTATE MARKET.