Positive data continues to emerge from the housing market, as buyers take advantage of home prices that have fallen dramatically from their peak, along with low interest rates, tax credits and a stock market that can’t seem to be kept down.

Pending Home Sales in June, which measure signed purchase contracts and are often examined as a forward looking measure of closed sales, rose 3.6% from the previous month, outpacing economists’ expectations. The index chalked up its fifth consecutive increase, according to Bloomberg.

Analysts were cautiously optimistic, citing a moderate uptick in sales against a backdrop of a weak employment outlook and very constrained consumer credit market. According to senior economist at New York-based 4Cast Inc.,

“It’s a modest recovery, however these numbers are exceeding peoples’ expectations. While there are genuine signs of recovery in housing and manufacturing, the consumer is still the big sort of worry,”

As talk of a rebound in housing continues to gain steam, it’s important to understand the distinction between “stabilization” and “recovery.” The former does not necessarily imply the latter. For more on this topic as it relates to the broader economy, check out this excellent article from Minyanville, by finance expert Satyajit Das.