US pending home sales fall slightly less than expected in October

Contracts to purchase previously owned US homes declined for the fifth month in a row in October, albeit slightly less than expected, as higher mortgage rates continued to weigh on the market.

According to the National Association of Realtors, its pending home sales index, based on signed contracts, decreased by 4.6% to 77.1 in October. Economists had forecast contracts to fall 5.0%.

Pending home sales dropped 37.0% year-on-year in October.

On a regional basis, contracts declined in three of the nation's four regions - with contracts rising 3.3% month-on-month in the Midwest. However, Midwest contracts were still down 32.1% year-on-year.

"October was a difficult month for home buyers," said NAR chief economist Lawrence Yun. "The West region, in particular, suffered from the combination of high interest rates and expensive home prices."

Reporting by Iain Gilbert at Sharecast.com