Pending sales of previously owned homes fell by a larger-than-expected 6.5% in August as more borrowers seeking home loans were turned away by cautious lenders.
The National Association of Realtors Pending Home Sales Index, based on contracts signed in August, fell to a reading of 85.5, the lowest since records began in January 2001.
The previous low was 89.8 in September 2001.
The fall was sharper than the 2.1% decline in the index economists were expecting for August and comes after existing home sales for the month dipped to their lowest level in five years.
Notably, more than 10% of sales contracts fell through late in the process largely due to borrower trouble securing credit, according to an NAR survey.
