Higher interest rates push California pending home sales lower

Rising mortgage rates put a dent in pending home sales in August, while distressed home sales fell to levels not seen in almost six years, the California Association of Realtorssaid in a press release.

California pending home sales fell in August with the Pending Home Sales Index falling 5% to 108.3, down from 114 in July.

The combined share of all distressed property sales continued to decline in August, dipping 15.3%, down from 17.1% in July and 38% in August 2012.

"Rising interest rates over the past several months at the specter of a tapering of the Fed’s stimulus program sent buyers to the sidelines in August,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “However, the Fed’s decision last week to postpone the pullback should lead to lower interest rates, which bodes well for prospective buyers."

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208