According to nationalmortgagenews, the National Association of Realtors pending sales index (PSI) dropped more than expected in September, minus six percent, following a two percent drop in August, 2013. The PSI tracks sales contract signings, and is now 1.2 percent below the level of signings last Sept. NAR Chief Economist Lawrence Yun says the drop is due to higher mortgage rates, rising house prices and the uncertainty generated by the 16 days of deadlock in Washington. As MHProNews reported Oct. 25, consumer sentiment has been dropping as well. Regionally, the South saw a drop of half a percentage point month-over-month, while the PSI in the other three regions fell eight to ten percent. The index is based on the number of contracts signed, although not all contracts become actual sales.
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