Signed contracts to buy previously owned homes in the U.S. unexpectedly rose in July, even as buyers continued to confront a spike in mortgage rates.

The National Association of Realtors said Wednesday that its pending home sales index climbed 0.9% over the course of July. Economists surveyed by Refinitiv expected contracts to decline by 0.6%. 

"The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home buying offers," said Lawrence Yun, NAR chief economist. "Jobs are being added and, thereby, enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many."

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