The number of signed sales contracts to buy previously owned homes rose in September for the eighth straight month as buyers rush to take advantage of a tax credit for first time owners that will expire at the end of this month, according to a real estate industry report released Monday.

The National Association of Realtor said Monday its Pending Home Sales Index for September jumped 6.1 percent to 110.1. It was the highest reading since December 2006 when it stood at 112.8.

"What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month," said Lawrence Yun, NAR's chief economist.

The index is a gauge of future sales as there is a one- to two-month lag between contract signing and a done deal.

The tax credit lapses after November 30, and the housing industry is expecting a major turndown in sales if Congress fails to pass the extension or expansion of the program.

Congress is attempting to extend the credit to buyers who sign sales agreements by April 30. Lawmakers also want to expand the program by including a $6,500 credit for buyers moving into other homes as long as they have been living in their current residence at least five years.

In the West, pending sales were up 10 percent. In the Midwest up by 8 percent and 5 up percent in the South while it went down 2 percent in the Northeast.

U.S. home sales rose in 39 states from the first quarter to the second quarter, another sign that the beleaguered housing market is finally improving.

Nationwide, total quarterly sales of single family homes rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million, from 4.58 million in the first quarter. Still the second quarter sales rate was about 3 percent lower the same quarter a year ago, the National Association of Realtors said Wednesday.

Sales jumped 20 percent or more in Idaho, Hawaii, New York, Wisconsin and Nebraska during the second quarter compared to the previous quarter. But sales fell by at least 6 percent in Alaska, Wyoming, California, Colorado and Michigan.

A number of Midwestern states, including hard-hit Michigan, Minnesota and Iowa, actually saw the sales rate jump in the 2nd quarter of this year compared to last year’s. The jump can be highly attributed to falling prices, deals on foreclosures and distressed properties, low interest rates and a tax credit aimed at first-time home buyers.

Nearly half the nation’s mortgage borrowers will soon be “underwater,” or will owe more on their mortgages than the value their homes.

A new analysis by the Deutsche Bank of the battered housing and mortgage markets estimates that 48 percent of US homeowners with mortgages or 25 million borrowers will be underwater before home prices are expected to stabilize which is expected to be in the beginning of 2011.

According to the report, the worst hit metro areas are Merced and El Centro California, both at the rust belt where 85 percent of the borrowers in the area are underwater.

Others areas include the following: Modesto, California with 84 percent followed by Las Vegas and Stockton California both with 81

The leading Florida cities are Cape Coral with 76 percent and Orlando 71 percent. In the Midwest, Mansfield and Cleveland, Ohio, topped the list with 54 percent each.

After spring cleaning and having some time in the sun, the summer is a good time to do some preventive maintenance on you home for winter.

1. Fix “water hammer” to minimize noises by draining the plumbing system. Open the highest (or the one farthest from the water meter) and lowest (the closest to the water meter) faucets, valves or outdoor faucet, and drain all water from pipes. Draining restores air to air chambers. Close the lowest faucet and refill the system.

2. Check faucets for leaks and replace washers or repair or replace the faucet when needed.

3. Clean the underside of the range hood. Remove and clean or replace range hood filters.

4. If a furnace is part of your air-conditioning system, check the filter. Clean or replace as needed of follow the recommendation by the manufacturer. Clean A/C condenser as well.

5. Clean condenser coils or fins beneath or behind refrigerator, Use a vacuum with a narrow nozzle to clean condenser coils on the back or underneath your refrigerator.

6. Clear air intakes, exhaust and meters of debris, nests, etc.

7. Check gutters and downspouts and clean if needed.

8. Check exterior finishes for moisture damage.

9. Check hot water heater for mineral buildup, drain, refill.

10. Check and repair interior caulking and grout on tile in showers and baths.

11. Check and repair all cracked, separated or missing exterior caulking and weather stripping, especially around windows and entry doors.

12. Seal coat and repair asphalt driveway as needed.

Pending home sales increased in June according to an industry report released Tuesday. The rise is the fifth straight month indicating a positive sign that the battered housing sector is on its way to recovery.

The National Association of Realtors Association said the Pending Home Sales Index increased 3.6 percent to 94.6 in June from a 91.3 reading in May.

It was the longest streak that the index increased for five straight months since 2003. The index includes signed contracts to purchase previously owned homes and is considered a measure future home sales activity with a 4 to six weeks lag between contract signing and completion of the deal.

Pending homes sales in June increased in all regions: in the South up 7.1 percent, in the West up 2.9 percent while in the Midwest and Northeast with 0.8 percent and 0.4 percent respectively. "It appears home sales are on a sounder footing and inventory is gradually being absorbed," Lawrence Yun, NAR’s chief economist in a statement.

"Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines," said Yun, "Activity has been consistently much stronger for lower priced homes."

The NAR attributes the increase in pending home sales to the $8,000 tax credit for first-time home buyers that can be used for a down payment is also encouraging buyers.

Yun expects existing-home sales to "gradually rise" over the year.