Pending home sales declined 1.1% to an index reading of 104.1 in October, after a revised 0.6% gain to 105.3 in September, according to a report released Monday by the National Association of Realtors.
The September increase was first reported as 0.3% to 105.0.
Economists polled by Thomson Reuters predicted that the index would be up 0.6%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 2.2% from last October, when the index was 101.0.
Regionally, pending sales were mostly lower. The Northeast saw a 0.5% gain to 87.9, while sales slid 0.6% in the Midwest to 100.6. In the South, sales fell 1.0% to 118.3, and sales dropped 3.2% to 98.1 in the West.
"In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash," NAR Chief Economist Lawrence Yun said. "Demand is holding steady but would be more robust if it weren't for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents."
