After two months of increasing activity, pending home sales went into a mild decline during October, according to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI).
On a regional basis, on the Northeast PHSI saw upward movement, rising 1.9 percent to 95.7. Falling percentages were recorded in the Midwest (down 2.7 percent to 101.4), the South (down 1.7 percent to 125.3) and the West (down 3.4 percent to 91.9)
Lawrence Yun, NAR’s chief economist, attributed the PHSI drop on lower inventory and a slight rise in mortgage rates.
“While contract signings have decreased, the overall economic landscape remains favorable,” Yun said. “Mortgage rates continue to be low at below four percent–which will attract buyers–employment levels are strong and many recession claims have dissipated.”