WASHINGTON, Sept. 5 (UPI) -- Pending sales of U.S. homes fell 16.1 percent from a year earlier and 12.2 percent from the previous month to a six-year low, a U.S. realty group said.
The National Association of Realtors said Wednesday that its July index of pending sales of existing homes fell to 89.9 from June's 102.4 and from July 2006's 107.1.
The reading was the index's lowest since September 2001, when the U.S. economy was shaken by terrorist attacks.
The index shows existing-home sales are likely to decline in coming months as mortgage disruptions work through the housing market, the group said.
"Our members are telling us some sales contracts aren't closing because mortgage commitments have been falling through at the last moment," Senior Economist Lawrence Yun said.
The pending home sales index records sales with signed contracts that have not closed. Pending sales typically close within one or two months of signing, the association said.
The index for the South slipped 6.6 percent from June to 104, 15.2 percent less than July 2006. The Northeast index fell 12.2 percent to 84.3, 10 percent lower than a year earlier. The West decreased 20.8 percent to 82.3, 21.8 percent less than the previous year. The Midwest dropped 13.1 percent to 80.4, 15.8 percent down from last year.
