US Pending Home Sales decline 7.1% in August

• Pending Home Sales in the US declined sharply in August.
• US Dollar Index stays deep in negative territory below 106.30.

Pending Home Sales in the US declined 7.1% in August, the National Association of Realtors reported on Thursday. This reading followed a 0.9% increase recorded in July and came in much worse than the market expectation for a decrease of 0.8%.

On a yearly basis, Pending Home Sales fell 18.3%. 

Commenting on the data, "mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers," said Lawrence Yun, NAR chief economist.

"Some would-be home buyers are taking a pause and readjusting their expectations about the location and type of home to better fit their budgets," he added.

Market reaction

The US Dollar stays on the back foot after this report. As of writing, the US Dollar Index was down 0.4% on the day at 106.23.