The number of consumers who signed contracts to buy homes fell for the third straight month in September after the traditional spring/summer buying season failed to entice many new buyers.
The National Association of Realtors Thursday reported that its index of pending home sales fell 4.6% last month to a reading of 84.5.
A reading of 100 is considered healthy. The last time the index reached that high was in April 2010, the final month that buyers could qualify for a federal tax credit.
In a press statement NAR chief economist Lawrence Yun said the housing market “is being excessively constrained,” adding that “A combination of weak consumer confidence and continuing tight lending criteria held back home buyers, even though the private sector added nearly 2 million net new jobs in the past 12 months.”
NAR also reported that a growing number of borrowers are cancelling contracts despite lower rates.
Contract signings are a barometer of where the housing market might be headed. There's usually a one- to two-month lag between a contract and a completed deal.
