US pending home sales stall unexpectedly in September
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The news: Contracts to buy previously-owned US home were unchanged in September, signalling that concerns around the job market may be keeping potential buyers from making purchases.
The numbers: Data released by the National Association of Realtors (NAR) on Wednesday saw an index of US contract signings hold at 74.8 after climbing a revised 4.2% a month earlier to the highest level since March.
Economists polled by Reuters had expected that contracts, which become sales after a month or two, would rise 1.0% after a previously reported 4.0% advance in August.
Pending home sales dropped 0.9% from a year earlier.
The context: According to NAR chief economist Lawrence Yun, "Contract signings matched the second-strongest pace of the year. However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low. A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market."
“Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity,” he added.
