Pending home sales are down 5.6% in September 2013, according to the National Association of REALTORS®. Here in California and other the western states, sales are down a whopping 9%. These are pending sale numbers, not closed sales.
The rise in mortgage rates, PMI (Private Mortgage Insurance, and a decreasing lack of confidence in our federal government are the main culprits being blamed for the decline. Here is a link to a CNBC video that reports on the pending home sales drop.