Pending Sales of U.S. Existing Homes Rise Less Than Forecast
Contracts to purchase previously owned U.S. homes rose less than forecast in November, reflecting rising borrowing costs are reining in a residential real estate recovery. A gauge of pending home sales increased 0.2 percent, the first gain in six months, after a 1.2 percent drop in October that was bigger than initially reported, the National Association of Realtors announced today. The median projection in a Bloomberg survey of economists called for a 1 percent advance. Higher mortgage rates, tight lending standards and price increases driven by a limited supply of homes for sale are discouraging prospective buyers.