- US Markets Bracing for Selloff on Dubai Debt Worries
- US Dollar Falls to 14-Year Low Against the Yen
- ING Prices Share Issue at Hefty Discount
- No Thanksgiving Rest for Retailers in Sales Race
- UK's Darling to Downgrade 2009 Growth Forecast
- Tommy Hilfiger's Estate in Conn. Sells for $20 Million
- Cheap Robotic Hamsters Are Holiday's Unlikely Craze
- Fannie Mae to Tighten Lending Standards: Report
- US Companies Already Moving on Curbing Emissions
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- Gold Retreats from Record High as Dollar Rebounds
- No Thanksgiving Rest for Retailers in Sales Race
- China Unveils Carbon Target Ahead of Copenhagen
- Fannie Mae to Tighten Lending Standards: Report
- Attraction of Switzerland to Businesses
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Great Britain, No Longer That Great: Investor
Text Size 
Pending sales of previously owned homes fell by a larger-than-expected 6.5% in August as more borrowers seeking home loans were turned away by cautious lenders, a real estate trade group said on Tuesday.
 |
previous low was 89.8 in September 2001.
The fall was sharper than the 2.1% decline in the index economists were expecting for August and comes after existing home sales for the month dipped to their lowest level in five years.
Notably, more than 10% of sales contracts fell through late in the process largely due to borrower trouble securing credit, according to an NAR survey.
"The impact was greater in high-cost markets that are more dependent on jumbo mortgages. In some areas, as much as 30% of signed contracts were falling through in August when the credit crunch problem peaked," NAR Senior Economist Lawrence Yun said in a statement.
Jumbo loans are those valued above $417,000 and are too large to be purchased by government-sponsored enterprises Fannie Mae and Freddie Mac.
The pending sales index was 21.5 percent below the August 2006 level of 108.9.
"The volume of activity we're seeing today is below sustainable market fundamentals because some credit-worthy people are trying to buy homes but can't because of the credit crunch," Yun said.
Print
Email
- What you need to know.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
Data is a real-time snapshot *Data is delayed at least 15 minutes