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Pending home sales in April posted their largest monthly increase since Oct 2001, the National Association of Realtors said on Tuesday. The Pending Home Sales Index, jumped to 90.3 in April from 84.6 in March.

It was the third straight monthly increase this year. The index is also now 3.2% above its level a year ago.

The 6.7% month to month jump took all economists by surprise. Most had forecast only a paltry 0.5% rise.

Yesterday we reflected on three indices that marked the end of the recession just past. The pending homes sales report is perhaps one of the first indications of just how resilient this new growth cycle will be.

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