US pending home sales rise more than expected in September

US pending home sales jumped more than expected last month thanks to a robust increase in the West and a healthy push higher in the South, according to data from the National Association of Realtors.

The NAR’s monthly index rose 1.5% to 110.0 in September from a slight downward revision of 108.4 the month before. Taking into account last month's gain, the index is now 2.4% higher than last September and has risen year-over-year for 22 of the last 25 months.

Economists had been expecting a 1% increase on the month.

Pending home sales in the South rose 1.9% to an index of 122.1 in September and are now 1.7% higher than the same month last year. Meanwhile, the index in the West was up 4.7% to 107.3, and is now 4% above a year ago.

In the Northeast, pending home sales dropped slid 1.6%, while sales in the Midwest slipped 0.2%.

The NAR's chief economist, Lawrence Yun, said: "Buyer demand is holding up impressively well this fall with realtors reporting much stronger foot traffic compared to a year ago.

"Although depressed inventory levels are keeping home prices elevated in most of the country, steady job gains and growing evidence that wages are finally starting to tick up are encouraging more households to consider buying a home."