Pending house sales in US down 2% mainly due to high mortgage rates: Association

By Gokhan Ergocun

ISTANBUL (AA) - Pending home sales in the US waned for the third consecutive month, down 2% in August from July, according to data released by the National Association of Realtors (NAR) on Wednesday.

"For the second month in a row, pending sales retreated in the Northeast, Midwest and South, while the West, again, registered a small increase," the NAR added in a press release.

Meanwhile, on an annual basis, all regions posted double-digit declines in August, "Year-over-year, pending transactions dwindled by 24.2%."

The association said that decade-high mortgage rates were the main reason for the declines.

"If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize," it added.

The Federal Reserve has so far raised rates a total of 300 basis points, or 3%, since March, while the Federal Open Market Committee said it "anticipates that ongoing increases in the target range will be appropriate."