US home sales disappoint as they hit 10 month low

US pending home sales have dropped by 0.6 per cent in October, despite analysts forecasting that they would rise by 1.3 per cent.

The previous month's drop looks less severe after revisions, from minus 5.6 per cent to minus 4.6 per cent. In the year to October pending home sales have fallen by 2.2 per cent.

Having declined for the fifth consecutive month, the National Association of Realtors's chief economist Lawrence Yun said that the "shutdown in the first half of last month sidelined some potential buyers".

Yun says that the US "could rebound a bit from this level, but still faces the headwinds of limited inventory and falling affordability conditions."