The MReport Webcast: Friday 8/29/2014

An early indicator of home sales suggests market activity should continue to increase in the coming months as the nation's housing stock rebuilds. The National Association of Realtors reported Thursday a 3.3 percent monthly increase in its Pending Home Sales Index for July, putting the index at 105.9. With July's increase, the index has now risen for four of the last five readings, seeing a slight retreat in June.

NAR Chief Economist Lawrence Yun said sales activity benefited from increasingly favorable conditions for buyers in the housing market, including low interest rates, slowing price increases, and improvements in total housing inventory.

Three of the four census regions showed sizable gains in pending sales, including the Northeast at 6-point-2 percent, the South at 4.2 percent, and the West at 4 percent. The Midwest, meanwhile, saw a slight decline, posting a nearly half a percent drop. On an annual basis, the Northeast was the only region to report higher pending sales, coming in with an 8.3 percent improvement.

The economy performed slightly better than expected during the second quarter, according to a second estimate released Thursday by the Commerce Department. The Bureau of Economic Analysis reported that gross domestic product grew last quarter at an annualized rate of 4.2 percent, a little bit better than the 4 percent growth originally recorded in last month's initial estimate. Though unsurprised by Thursday's report, economists said it comes as a positive sign for the economy, with TD Bank’s Michael Dolega calling it quote--confirmation that the acceleration remains on a solid footing. The third estimate for GDP growth is scheduled for release late September.