Washington - Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors (NAR).

The Pending Home Sales Index, a forward-looking indicator, rose 6.0 percent to 110.9 based on contracts signed in April. That follows gains of 7.1 percent in March and 8.3 percent in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

"The home buyer tax credit brought close to one million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation," stated NAR's chief economist Lawrence Yun.

Bill amendment would extend 2010 Tax Credit closing deadline to September 30, 2010

NAR has reported this week that H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, has been amended in the Senate with a provision to extend the closing deadline to September 30, 2010 for the First-time and Repeat Home Buyers Tax Credit.

The amendment was introduced by Senate heavyweights Majority Leader Harry Reid, D-Nev., and Sens. Johnny Isakson, R-Ga., and Chris Dodd, D-Conn. Senators voted on Wednesday 60-37 in favor of the Reid amendment.

NAR estimates the number of home buyers who have qualified for the tax credit and met the contract deadline of April 30, but who would not be able to close their transaction by the June 30 deadline, could go as high as 180,000.

Realtors have reported as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.

Vicki Cox Golder, NAR President, stated for the record "It would be a tragedy for them not to be able to complete the purchase in time to claim the credit."

The massive $102 billion H.R. 4213 bill was passed by the House on May 26, 2010 and sent to the Senate. With the amendments added by the Senate, the House must approve the measure again before going to President Obama for his signature.

Flood Insurance Extension

Also in the H.R. 4213 bill, under TITLE VI - Other Provisions, is a proposed extension of the National Flood Insurance Program (NFIP) through the end of 2010.

The official start date of the Atlantic hurricane season was June 1, but no flood policies have been issued or renewed because the National Flood Insurance Program expired 17 days ago at midnight on May 31, 2010.

As a result, until Congress reauthorizes the program, policies cannot be issued and existing policyholders cannot increase their coverage limits during the program's hiatus.