Cheaper mortgages gave US homebuyers new life in August, lifting pending sales well above forecasts.
The National Association of Realtors reported a 4.0% monthly jump in signed contracts, far stronger than the 0.2% increase economists expected.
Pending sales, which typically close within a couple of months, were higher in the South, Midwest and West but slipped in the Northeast. Compared with a year earlier, they were up 3.8%.
NAR chief economist Lawrence Yun said lower borrowing costs were drawing buyers back into the market.
The average 30-year mortgage rate has dropped to an 11-month low as the Federal Reserve eased policy with a September rate cut. Yet hiring has slowed sharply, raising doubts about how long the rebound can last.