Pending home sales slump to 9-year low
Pending home sales in June dropped to lowest since 2001. (July 2010) Credit: AP
The number of buyers who signed contracts to purchase homes dropped in June, as the weak economy and tight lending standards kept consumers away from the housing market. Also, incomes failed to rise for the first time since September.
The National Association of Realtors says its seasonally adjusted index of sales agreements for previously occupied homes dipped 2.6 percent to a reading of 75.7. That was the lowest on records dating back to 2001 and down nearly 19 percent from the same month a year earlier.
May's reading was revised slightly downward to 77.7. Economists surveyed by Thomson Reuters had expected the index would rise to 78.1.
The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.
At the same time, the Commerce Department reported both personal incomes and spending were unchanged in June. Incomes failed to rise for the first time since September and purchases were steady after a 0.1 percent gain the prior month that was smaller than previously estimated.
