Pending Home Sales Dropped in September (MarketWatch)

For the first time in two years, pending sales of homes were lower than year-earlier levels, as reported by the National Association of Realtors. September pending home sales were down 1.2% from a year previous, having dropped 5.6% from August. “The data suggest sluggish home sales going into the end of the year and are sending a warning signal to the Fed as they meet this week that the housing recovery might not be self-sustaining yet and even modest rate fluctuations can considerably affect demand,” said Yelena Shulyatyeva, an economist at BNP Paribas.

Mortgage interest rates appear to be a leading factor in the softening housing market. Where should interest rates go next and who should put them there? Sound off below.

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