Report says home sales inch up on shaky economy

The number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace. The weak economy and fears that prices will fall are keeping many consumers away from the housing market.

The National Association of Realtors says its seasonally adjusted index of sales agreements for previously occupied homes rose 4.3 percent to a reading of 82.3. That's still more than 20 percent below the pace in the same month a year earlier.

Economists surveyed by Thomson Reuters had expected the index would rise to 81.4.

The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.

In another report, the U.S. Commerce Department said orders to U.S. factories fell in August, reflecting a big drop in demand for commercial aircraft. But outside of the volatile transportation sector, orders rose for the first time since March, posting a solid 0.9 percent increase.