The National Association of Realtors’ Pending Home Sales Index is a forward-looking indicator based on the number of contract signings each month. The Index doesn’t reflect closings but is a good indicator of future sales of previously owned homes. In September, the Index dropped 5.6 percent. It was the fourth consecutive month pending sales declined. Lawrence Yun, NAR’s chief economist, said concerns about the government shutdown played a role. According to Yun, declining housing affordability conditions combined with uncertainty caused by the looming shutdown were the likely cause of the reduced contract activity. But despite decreasing sales trends, existing-home sales will be 10 percent higher this year than 2012, reaching more than 5.1 million. Also, the NAR expects home prices to moderate next year after rising more than 11 percent this year. More here.