The pending home sales index climbed unexpectedly by 3.7% to 114.1 after increasing 6% in September, according to the National Association of Realtors. Considering that the market had been expecting a 1% decline, the news surprised many investors and sent homebuilders like Pulte Homes, Standard Pacific and the Ryland Group higher during Tuesday’s session.

The catalyst behind the ninth consecutive month of gains – despite analyst forecasts of a decline – is largely believed to be the first-time homebuyer tax credit that was extended into next year and expanded to include current owners. However, many economists believed that the high unemployment rate and mounting foreclosures would curb growth more than it has in reality.

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