The National Association of Realtors' index of signed purchase agreements fell 6.5 percent from the previous month, the group said today in Washington. The decline was more than economists anticipated and pushed the measure to the lowest level since the organization began tracking purchases in 2001. The gauge plunged 11 percent in July.
``The existing homes market is now in freefall,'' said Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd., in Valhalla, New York. ``The downside from here is still substantial.''
Higher credit costs and lending restrictions after the collapse in subprime mortgages may push the industry downturn well into 2008. The Federal Reserve will probably need to make further cuts in interest rates to keep the broader economy expanding, economists said.
And yesterday Citigroup called a bottom in the housing market....
