Pending home sales grew 0.3% to an index reading of 105.0 in September, after an unrevised 1.0% gain to 104.7 in August, according to a report released Monday by the National Association of Realtors.
Economists polled by Thomson Reuters predicted that the index would be up 0.5%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 1.0% from last September, when the index was 104.0.
Regionally, pending sales were mixed. The Northeast saw a 1.2% gain to 87.5, while sales slid 1.2% in the Midwest to 101.2. In the South, sales rose 1.4% to 118.5, and sales fell 0.8% to 101.3 in the West.
"Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year," NAR Chief Economist Lawrence Yun said. "Additionally, the current spectacularly low mortgage rates should help more buyers reach the market."
Tight credit conditions have tamped the market, but the final rule on qualified residential mortgages should improve access to credit once it goes into effect next year, Yun said. "The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome downpayment requirements."
