Pending home sales rose for the fourth straight month in May, and investors are taking this as another sign that the housing sector is recovering.
The National Association of Realtors reported that its seasonally adjusted index of pending sales increased by .1% percent to 90.7. Analysts expected no change.
Shares of home builders remained steady during morning trading. Toll Brothers (TOL - Get Report) rose 1.5% to $17.23, Pulte Homes (PHM - Get Report) climbed 2% to $9.03 and Centex (CTX) rose 3% to $8.68.
The NAR attributes the increase to lower home prices and the $8,000 first-time homebuyer tax credit that was included in the Obama administration's stimulus package.