Warning Sign: Pending Home Sales Fell in October, 10th Month of Year-Over-Year Declines

The Associated Press

The housing market was even weaker in October than expected.

Pending home sales, based on signed contracts to buy existing homes, fell 2.6 percent compared with September, for a year-over-year decline of 6.7 percent.

Last month, however, pending sales broke a long-streak of month-over-month declines. That flicker of hope for the housing market, which has been the weakest part of an otherwise very strong economy, was effectively extinguished by October’s data.

On a year-over-year basis, this gauge of the housing market has fallen for ten months in a row.

The disappointing data on Thursday follows close on the heels of lower-than-expected new home sales data on Wednesday. These fell 12 percent year-over-year, according to the U.S. Census.

The decline in sales is largely blamed on a decline in affordability. Home prices are up by more than incomes and mortgage rates have climbed as the Fed hiked rates this year.

 

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