Economists estimate that the indicator, based on signed contracts for real estate, increased 0.4% month-on-month, and 8.1% year-on-year.
In a preview to clients, Bank of America Merrill Lynch economists wrote, "We expect pending home sales will slip 0.5% mom in August, a slight reversal after the solid performance in the first half of the year. Mortgage purchase applications weakened in August and although the correlation with pending home sales is low, it gives a sense of the risks to the direction of sales."