US pending home sales decline unexpectedly in September

The index from the National Association of Realtors (NAR) declined 2.3% month-on-month in September compared with a 1.4% decline in the previous month and with analysts’ expectations for a 1% increase.

The decline took the index to its second-lowest level of 2015, though it remained 3% higher year-on-year.

On a year-on-year basis, pending home sales rose 2.5% compared with a downwardly revised 6.6% gain in August and analysts’ expectations for a 7.4% gain.

"Pending home sales have declined for two consecutive months now," said analysts at Barclays.

"With about 80% of them likely turning into existing home sales transactions in the next two months, we see today’s data as suggesting some softness in home sales in the fourth quarter."