"As the housing market tries to land on the runway, there's going to be a few hard bounces," said Brian Bethune, an economist at Global Insight Inc. in Lexington, Massachusetts. "Maybe you could think of this as a bounce up... Affordability has improved. We're starting to move toward a bottom."

SOURCE: Bloomberg

U.S. pending sales of previously owned homes unexpectedly rose in June as buyers swept up foreclosed and lower-priced properties.

The index of pending home resales rose 5.3 percent after a revised 4.9 percent decline in May, the National Association of Realtors said today in Washington. Other reports showed claims for jobless benefits jumped last week to a six-year high and consumer borrowing surged in June.

The most foreclosures on record have forced property values down enough to stir interest among buyers, helping to stabilize the market. Still, repossessions may keep mounting as stricter lending rules make it harder for owners to refinance their mortgages, economists said.

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