A new report suggests that the U.S. housing market may be losing steam.
On Monday, the National Association of Realtors (NAR) announced that its Pending Home Sales Index fell 0.6% 10 a reading of 102.1 in October. That marked the fifth consecutive months decline and a ten-month low for the index. It also disappointed economists who had expected the index to climb by 1.3%, Reuters notes
October’s pending home sales had been dented by mortgage approval disruptions stemming from the prolonged government shutdown, NAR noted.
The resale of existing homes also declined last month, possibly due to rising mortgage interest rates.
Pending home sale contracts last month were 1.6% lower than during the same time last year.
Homebuilder stocks shook off the news, surging strongly in Tuesday morning trading. Toll Brothers (TOL) and D.R. Horton (DHI) both rose more than 3%, while Ryland Group (RYL) soared almost 5%.