WASHINGTON (Reuters) – Pending sales of existing U.S. homes fell less than expected in August despite rock-bottom mortgage rates, underscoring the difficulties policymakers face in helping the struggling housing sector.
The National Association of Realtors said on Thursday that its pending home sales index, based on contracts signed in August, was down 1.2 percent to 88.6, its lowest since April.
Analysts polled by Reuters ahead of the report were expecting sales to decline 1.8 percent.
Hurricane Irene, which battered the Northeast at the end of the month, was likely a factor in the decline. Sales in the Northeast fell 5.8 percent.
But the NAR’s chief economist Lawrence Yun said tight credit was also holding back the overall housing market.
Banks clamped down on credit when the financial crisis struck in 2007 and credit conditions remain restrictive for many households.
“The housing market is basically stuck at a low level. I don’t see any evidence that sales
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