An index that measures the number of contracts to buy previously-owned homes in the U.S. rose 5.2% in July, better than expected, with gains in all four regions.

The National Association of Realtors said Thursday morning that its index of pending home sales, which tracks signed sales contracts, rose 5.2%. Economists had expected the index to fall by 1.1% to a reading of 74.9, from a downwardly revised 2.6% decline in June.

The pending home sales index plunged 29.9% in May and another 2.8% in June after the April 30 expiration of federal tax credits for homebuyers.

Is there any reason for hope in this gloomy summer for the economy? A certain fatalism - that a double-dip recession is inevitable - has crept into a lot of economic analysis lately, but it may be overstating the degree to which we are in dire straits. A roaring recovery is probably not on the way, but here are five reasons that a slow-and-steady recovery is likely to continue.

Savings

The savings rate rose from 2.7 percent at the start of the recession, in the beginning of 2008, to 5.9 percent in July. That means households are farther along in readjusting their spending patterns to match their incomes than was previously realized. That should make them freer to spend more in the months ahead.

Credit

Gradual healing is underway in the financial sector, making loans more available for households and businesses. The most recent edition of the Federal Reserve's senior loan officers survey showed that more banks have eased lending standards for corporate loans. For companies with access to global capital markets, interest rates remain quite low, which supports growth.

The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.

Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.

As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

Like any home improvement project, a green remodeling job will cost you upfront. But besides being eco-friendly, a green makeover can pay you back over the long haul in a couple of ways.

First, a green home saves energy and cuts water consumption, saving you money on your monthly utility bills. Second, in addition to being cheaper to run, green homes offer eco-friendly amenities like superior indoor air quality. Third, green remodeling could give your home equity a boost by making your place more attractive to potential buyers if you put it on the market.

"If you can make your home more affordable to operate over the long term, it will be more desirable when it's time to sell,'' says Kevin Morrow, senior program manager of green building programs at the National Association of Home Builders, or NAHB.