Contracts to buy previously owned U.S. homes unexpectedly increased 0.3% in August to 71.2, according to the National Association of Realtors. Economists polled by Reuters had expected a 0.6% decline. Pending sales rose in the South and West but fell in the Northeast and Midwest, and remained 4.7% below August a year earlier. The increase is likely to be temporary as elevated mortgage rates continue to keep some buyers out of the market. The 30-year fixed mortgage rate averaged 6.76% last week, its highest level in more than a year, while the benchmark 10-year Treasury yield hovered around 5.0%. The U.S. central bank raised interest rates on Wednesday for the first time since July 2023. Lawrence Yun, the NAR's chief economist, said contract signings were roughly 30% below pre-pandemic levels and that activity had not returned to its 2021 peak, when mortgage rates approached 3%.