WASHINGTON (MNI) – The following is the text of a statement
released by the National Association of Realtors regarding September’s
pending home sales, released October 27:

Pending home sales declined in September, although activity remains
above a year ago, according to the National Association of Realtors .

The Pending Home Sales Index,* a forward-looking indicator based on
contract signings, fell 4.6 percent to 84.5 in September from 88.6 in
August but is 6.4 percent higher than September 2010 when it stood at
79.4. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said the housing market is being
excessively constrained. “A combination of weak consumer confidence and
continuing tight lending criteria held back home buyers, even though the
private sector added nearly 2 million net new jobs in the past 12
months,” he said.

The PHSI in the Northeast declined 4.7 percent to 60.6 in September
but is 4.0 percent above a year ago. In the Midwest the index dropped
6.2 percent to 71.5 in September but remains 12.3 percent higher than
September 2010. Pending home sales in the South fell 5.5 percent in
September to an index of 91.6 but are 5.0 percent above a year ago. In
the West the index declined 2.1 percent to 105.8 in September but is 5.6
percent higher than September 2010.

“America’s monetary policy is contradictory and confusing, where
some consumers with the best financial capacity and top-notch credit
scores pay higher mortgage interest rates,” Yun said. “The Federal
Reserve evidently has been attempting to lower mortgage rates, yet more
consumers are faced with taking out jumbo loans that carry higher
interest rates.”

Yun emphasized the need to reinstate higher loan limits in 42
states. “Just leaving excessive cash to sit in banks and not work into
the economy is a drag on the overall recovery,” he said. “We need a
comprehensive approach to address housing issues – not additional
impediments.”

The National Association of Realtors, “The Voice for Real Estate,”
is America’s largest trade association, representing 1.1 million members
involved in all aspects of the residential and commercial real estate
industries.

** Market News International Washington Bureau: 202-371-2121 **

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