Resale home deals in November up less than expected

[WASHINGTON] Contracts to purchase previously owned US homes rose less than forecast in November, indicating higher borrowing costs are holding back the recovery in residential real estate.

A gauge of pending home sales increased 0.2 per cent, the first gain in six months, after a 1.2 per cent drop in October that was larger than initially reported, the National Association of Realtors said yesterday in Washington.

Higher mortgage rates, tight lending standards and price increases driven by a limited supply of homes for sale are discouraging prospective buyers. Further gains in hiring, household wealth and consumer confidence would help boost the housing recovery and give greater momentum to the economy.