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.