The number of existing home transactions increased in August more than expected. 

The index of contracts for existing home sales rose 6.4% after a 3.2% gain for the month of July, as reported by the National Association of realtors.  This is the seventh month in a row that this index has risen. 

Many experts believe that these sales are being stimulated by factors such as: declining home prices, low mortgage rates and government stimulus programs.  These factors are helping alleviate the housing market downfall that we have been experiencing. 

Federal Reserve policy makers announced last week that they are committed to buy $1.25 trillion mortgage back securities.  “We are in a recovery,” said Gary Thayer, macro strategist at Wells Fargo Advisors LLC in St. Louis, before today’s report. “There were a lot of people who were on the fence. Prices are firming up and people are getting back into the market.”