WASHINGTON (MarketWatch) -- A gauge of pending home sales fell 1% in
August, pulling back from an 11-month high in July, the National
Association of Realtors reported Monday. Signaling that upcoming
closings of existing homes are likely to slow down, the index of pending
home sales hit a seasonally adjusted 104.7 in August, compared with
105.8 in July. Last month's drop is likely due to waning investor
activity as the pool of cheap, distressed properties dries up. By
region, August's gauge of pending home sales fell 3% in the Northeast,
2.1% in the Midwest and 1.4% in the South. Meanwhile, the gauge rose
2.6% in the West. Rising mortgage rates and prices cut home sales this
year, and August's gauge of pending deals was down 2.2% from the
year-earlier period. Existing-home sales for all of 2014 are expected to
hit 4.94 million, below 2013's final tally of 5.09 million, NAR
forecast. Pending sales typically close within two months. An index
reading of 100 equals 2001's average contract activity level.
