US: Pending home sales fall 2.5% in November

US pending home sales index fell 2.5% in November from a month earlier to a seasonally adjusted 107.3, the National Association of Realtors said Wednesday.

Analysts had expected a 0.5% rise in November but instead, the index fell to its lowest level in 10 months. Compared with November 2015, the index dropped 0.4% last month.     

Lawrence Yun, NAR chief economist, says ongoing supply shortages and the surge in mortgage rates took a small bite out of pending sales in November. "The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” he said. "Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract."