US pending home sales drop for sixth consecutive month in Novermber

Pending home sales declined for sixth consecutive month in November with contract signings lower across all four regions.

According to the National Association of Realtors, its Pending Home Sales Index fell at a month-on-month clip of 4.0% to reach 73.9, for an annual drop of 37.8%.

"Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home," said NAR chief economist Lawrence Yun.

"Falling home sales and construction have hurt broader economic activity."

Nonetheless, the recent drop in mortgage rates, which lead home sales by roughly two months, home purchases should "inevitably" rebound in coming months and support the economy, Yun added.

NAR defined a sales as pending once a contract had been signed but the transaction had yet to close, something which tended to occur over the ensuing two months.