Nov. 30 (UPI) — Pending sales in the U.S. housing market declined slightly for a second consecutive month in October, signaling buyers may be reaching a limit on what they can afford, updated data showed Monday.
The Pending Home Sales Index, which analyzes home sales based on contract signings, fell 1.1% to 128.9 in October after dipping 2.2% the previous month, the National Association of Realtors said.
An index of 100 is equal to the level of contract activity in 2001.
Despite the recent slowdown, homebuying activity remained more than 20% higher than October 2019, spurred by continuing strong demand from first-time buyers and historic lows for both mortgage rates and the supply of homes for sale.
“Pending home transactions saw a small drop-off from the prior month but still easily outperformed last year’s numbers for October,” said Lawrence Yun, NAR’s chief economist. “The housing market is still hot, but