Pending home sales in the US rose to a seven-month high in A...

Pending home sales in the US rose to a seven-month high in August, but high housing prices slowed down the momentum of the property market

$iShares US Home Construction ETF (ITB.US)$ Pending home sales in the United States rebounded to a seven-month high in August, but due to still tight supply, rising housing prices are slowing down the momentum of the housing market. Other data showed that last week's mortgage applications fell due to the rise in mortgage interest rates, after the Fed hinted that it might start reducing the monthly bond purchases as early as November. The National Association of Real Estate (NAR) announced that the US August pending home sales index rose 8.1% from the previous month to 119.5, which is the highest level since January. It had fallen for two consecutive months.

Article excerpted from Reuters Financial Morning Post