A report released recently said that more Americans signed contracts to buy a home in July than in June, marking the longest streak of increases on record. The National Association of REALTORS^® pending home sales index rose 3.2% in July after rising by 3.6% in June, which is 12% higher than July 2008, and marks the sixth straight increase since record-keeping began in 2001. The report vastly improved on forecasts by some economists who predicted a much more modest increase of 1.5 percent. Signed real estate contracts are usually considered an indicator of the health of the real estate market because they frequently take weeks, or in some cases months, to complete. NAR chief economist, Lawrence Yun, said that momentum in the housing market has clearly taken a turn for the better. “The recovery is broad-based across many parts of the country,” he said. “Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit.” People taking advantage of the tax credit for first-time homebuyers are regarded as the biggest part of the rise in home sales, but the tax credit program is scheduled to expire on November 30 and members of the NAR are concerned about what will happen when it does. The NAR said that the affordability of homes also contributed to the rise in home sales. “The average middle-income family can now spend less than 25% of monthly income to buy a median-priced home,” Yun said, adding, “Housing payments as a percentage of income in 2009 are at a record low. As long as home buyers stay within their budget, mortgage payments will be very manageable.”