A new report adds to the evidence that rising borrowing costs are weighing heavily on housing demand, despite growing housing inventory and an increasing number of sellers cutting their asking prices.
The National Association of Realtors said on Oct. 20 that its Pending Home Sales Index fell 7.3 percent from August and 11.3 percent from last year to 66. A reading of 100 represents the average level of contract activity in 2001, indicating current contract activity is roughly one-third below that benchmark.
Pending home sales, which measure purchase contracts that have been signed but have not yet closed, are considered a leading indicator of completed home sales because most transactions close within one or two months….