Housing market loses some steam as year winds down
Contracts to buy previously owned homes in November declined for a third time in four months, with the pullback illustrating an industry losing some steam as 2015 drew to a close.
The index of pending home sales fell 0.9 percent after a revised 0.4 percent increase in October, the National Association of Realtors said Wednesday.
Increasing prices and limited supply were among the factors cited by the trade group.
"Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains," said Lawrence Yun, the trade group's chief economist, in a statement.
"Especially with mortgage rates likely on the rise, affordability issues could creep up enough to temper sales growth - especially to first-time buyers in higher priced markets," said Yun.