WASHINGTON, DC – Americans signed fewer contracts to purchase homes in October, as would-be buyers struggled to find available properties.
The National Association of Realtors said Wednesday that its pending home sales index, which measures the number of purchase contracts signed, fell 1.7% last month. The signed contracts become final purchases 1-2 months later.
Still, declining mortgage rates over time have lifted home sales. The index is up 4.4% from a year ago.
Mortgage rates have fallen sharply in the past year, partly because the Federal Reserve has lowered its benchmark short-term interest rate. That has partially offset steady increases in average home prices across the nation.
With companies hiring at a solid pace and wages rising modestly, Americans’ finances are generally improving and enabling more people to buy. Sales of existing homes have increased 4.6% in the past year. New home sale have soared by almost a third in the past year.
But Americans who want to buy a home have fewer choices. The number of available houses fell to 1.8 million in October, a record low for that month.
Pending home sales rose in the Northeast and fell in the South, Midwest, and West.