Pending Home Sales Index Contracts 1.8%

Before the sale of previously owned homes in the United States fell unexpectedly in September, a report showed on Friday, and the action may remain volatile for months as foreclosures have any problems with disrupting the market.

National Association of Realtors said the Pending Home Sales Index, based on contracts signed in September fell 1.8 percent from 80.9 upward revised 82.4 in August.

Economists surveyed Reuters expected 3 percent increase. data reflects home sales contracts, without transformation, and is seen as a leading indicator of developments in the housing market.

"Home sales have been somewhat 'improved, but the closure of a suspension can cause some discomfort and contribute to the unequal development of sales in the coming months," NAR chief economist Lawrence Yun said in a statement.

Several large U.S. mortgage foreclosures temporarily halted in October of lawyers in general in all 50 states cleared by the banks were accused of having damaged the paper in the evictions.

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