32 percent of closed April sales according to the NAR, investors are slowing their purchases and leaving mortgage-dependent buyers to pick up the slack.
The housing sector has raising concerns, as the rise in the ending home sales in April in the U.S. was less than than the expectations.
The gain rate was expected to be 1% but according to a report, the National Association of Realtors (NAR) said its pending home sales index eased up by a seasonally adjusted 0.4% last month.
The March Pending home sales rose by 3.4%.
“Higher inventory levels are giving buyers more choices, and a slight decline in mortgage interest rates this spring is raising prospective homebuyers’ confidence,” said Lawrence Yun, chief economist for the NAR. “An uptrend in closed sales is expected, although some months will encounter a modest setback.”
Every year the pending home sales is decreasing at annualized rate of 9.4% in April, worse than expectations for an 8.9% decline.
The release of the data , the euro held to gains against the U.S. dollar, with EUR/USD rising 0.07% to trade at 1.3602.
The U.S. equity markets were higher after the open.
The Dow 30 rose 0.15%, the S&P 500 advanced 0.25%, while the NASDAQ Composite inched up 0.35%.
32 percent of closed April sales according to the NAR, investors are slowing their purchases and leaving mortgage-dependent buyers to pick up the slack.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes a duration of four to six weeks to close a contracted sale.