WASHINGTON: Contracts to buy previously owned U.S. homes rose far less than expected in October, the latest sign that the housing market recovery was losing momentum after strong gains early this year.
The National Association of Realtors said on Monday its pending home sales index edged up 0.2 percent to 107.7. While the increase ended two straight months of declines, it was far below economists' expectations for a 1.0 percent rebound.
Pending home contracts become sales after a month or two, and last month's small gain suggested home resales will probably not bounce back after falling 3.4 percent in October.
Also coming on the heels of weak housing starts in October and a dip in homebuilders confidence in November, the report suggested a moderation in housing activity. Home sales are being constrained by tight inventories, which are pushing up prices.
Pending home sales are up 3.9 percent from a year ago. Contracts increased 4.5 percent in the Northeast and rose 1.7 percent in the West. They dropped 1.7 percent in the South and fell 1.0 percent in the Midwest.
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