U.S. pending home sales fall to decade-low on higher mortgage rates, signals pressure on housing market

Pending home sales in the United States unexpectedly fell to a decade-low during the month of November, following a sudden rise in mortgage lending rates amid limited inventory, signaling pressure on the country’s housing market.

The U.S.’ pending home sales gauge declined 2.5 percent (forecast was for 0.5 percent gain) after rising 0.1 percent the prior month Index increased 1.4 percent from November 2015 on an unadjusted basis Pending sales decreased in three of four U.S. regions on a month-to-month basis, data released by the National Association of Realtors in Washington showed Wednesday.

Further, home purchases decreased 6.7 percent in the West, the biggest decline since July 2013; index fell 2.5 percent in the Midwest to the lowest level since January. The measure of contract signings in the South, the nation’s largest region, declined 1.2 percent to the weakest level since September 2014.

Also, on a seasonally adjusted basis, pending-sales gauge fell in November to 107.3, the lowest since January. NAR economist Yun projects 5.42 million home sales this year, up from 5.25 million in 2015 and the strongest since 2006, Bloomberg reported.

Meanwhile, the dollar index traded at 102.92, down -0.37 percent, while at 5:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -100.21 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex