WASHINGTON (Reuters) – Contracts for the purchase of used homes in the United States were unexpectedly unchanged in September despite falling mortgage rates, likely because worries about the job market kept would-be buyers away.
The flat reading of pending home sales last month, released by the National Association of Realtors on Wednesday, followed an upwardly revised increase of 4.2% in August.
Economists polled by Reuters had forecast a 1.0% rise in contracts, which become sales after a month or two, after a 4.0% advance previously reported in August. Pending home sales fell 0.9% in September from a year earlier.
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“A record high stock market and rising home equity in September were not enough to offset a likely slowdown in the job market,” said Lawrence Yun, chief economist at the brokers association.
Mortgage rates fell as the Federal Reserve cut interest rates again. The US central bank is expected to cut its benchmark interest rate by another 25 basis points to the range of 3.75% to 4.00% later on Wednesday.
The average rate on the popular 30-year fixed-rate mortgage fell to 6.30% at the end of September from about 6.56% in August, according to data from mortgage lending agency Freddie Mac. Since then, the rate has fallen to a one-year low of 6.19%.
(Reporting by Lucia Mutikani)
