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New York

Contracts for existing U.S. homes fall for fifth straight month

IHS' Patrick Newport
IHS' Patrick Newport

For the fifth month in a row, the number of pending sales of previously-owned homes in the U.S. stumbled in October, as borrowing costs climb.

Contracts fell 0.6 percent for the month, according to data from the National Association of Realtors. The drop was not as steep as in September, when pending sales fell 4.6 percent. The pending sales index also reached its lowest point of the year in October – 102.1 on a seasonally adjusted basis.

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Still, experts said the fall may not indicate the market has taken a turn.

“When mortgage rates went up, people got spooked and rushed into the market to seal deals,” economist Patrick Newport of Massachusetts-based IHS Global Insight told Bloomberg News. “The numbers that we’re seeing for pending home sales are payback for the stronger numbers earlier this year.” [Bloomberg News] — Mark Maurer

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Home SalesNational Association Of Realtors