Pending home sales plummet to all-time low in May: NAR

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After rising in March, pending home sales continued to slide in May, with the Pending Home Sales Index (PHSI) posting its second consecutive month of declines to reach a record low, according to data released Thursday by the National Association of Realtors (NAR).

The PHSI fell 2.1% from April to a reading of 70.8 in May, which was down 6.6% on a yearly basis.

An index of 100 is equal to the level of contract activity in 2001. According to industry analysts, this is the lowest index reading recorded since NAR began collecting the data in 2001.

Experts attribute the drop in pending home sales to mortgage rate volatility.