Pending home sales jumped 3.2% m/m in July to the highest level since June 2007, exceeding expectations. Home sales have increased for six consecutive months, the first time this has occurred in the history of the series which dates back to 2001. The sharp upturn in home sales has been driven by the combination of greater affordability, a brighter economic outlook, and the first-time homebuyer tax credit. On a regional level, pending home sales jumped 12.1% and 3.0% in the West and the South, respectively. However, sales fell 2.0% and 3.0% in the Midwest and in the Northeast, respectively. Home sales are up y/y in all four Census divisions, with the most notable improvement of 12.1% in the West. On balance, this was a decidedly positive report, showing that the housing recovery is very much under way.