According to the National Association of Realtors (NAR), the Pending Homes Sales Index (PHSI) slipped 1.0 percent in August to 104.7 from 105.8 in July, and is now below the August 2013 reading of 107.1. Regardless of the slight decline, as the worldpropertychannel.com reports,the index remains above 100 (an average level of contract activity) and is at its second highest level since August 2013. Lawrence Yun, NAR’s chief economist, says, “Fewer distressed homes at bargain prices and the acknowledgment we’re entering a rising interest rate environment likely caused hesitation among investors last month. With investors pulling back, the market is shifting more towards traditional and first-time buyers who rely on mortgages to purchase a home.” Regionally, the PHSI fell in the Northeast, the South and the Midwest but rose in the West. MHProNews understands the continuing low interest rates, falling unemployment rate and slowed home price growth should stimulate the sale of existing homes for the remainder of the year. ##

(Photo credit: Paul Sakuma/Associated Press)