Pending home sales fell 1% month-over-month in August.
On a year-over-year basis, pending home sales fell 4.1%.
Expectations were for pending home sales to fall 0.5% month-over-month and fall 1.4% on a year-over-year basis.
Lawrence Yun, chief economist at the National Association of Realtors, said of the report: “Fewer distressed homes at bargain prices and the acknowledgment we’re entering a rising interest rate environment likely caused hesitation among investors last month. With investors pulling back, the market is shifting more towards traditional and first-time buyers who rely on mortgages to purchase a home.”
Last month pending homes sales grew 3.3% month-over-month, but declined 2.7% year-over-year.