U.S. PENDING HOME SALES FALL MORE THAN EXPECTED IN AUGUST

Contracts to buy U.S. existing homes fell more than expected in August, tumbling by the most in nearly a year as high mortgage rates erode affordability, according to a survey released on Thursday. The National Association of Realtors' Pending Home Sales Index fell 7.1% to 71.8 from July's revised 77.3. The decrease, the largest since September 2022, exceeded the median economist forecast for a 0.8% fall.

On a year-over-year basis, pending sales were down 18.7%. The fall occurred as buyer affordability continued to decline last month. The average mortgage payment rose to $2,170 in August, up $331 - or 18% - year-over-year, according to another data published on Thursday by the Mortgage Bankers Association. The weekly average rate on a 30-year fixed mortgage has remained above 7% since early August following the Federal Reserve's campaign to raise interest rates in an aggressive effort to curb inflation.

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