washington nov 30 reuters  contracts to buy us previously owned homes fell for a fifth straight month in october as the housing market continued to sag amid higher mortgage rates the national association of realtors nar said on wednesday its pending home sales index based on signed contracts fell 46 to 771 last month economists polled by reuters had forecast contracts which become sales after a month or two would fall 50 pending home sales dropped 370 in october on a yearonyear basis contracts declined in three of the nations four regions in the midwest contracts rose 33 but are down 321 from the same month one year ago the overall decline in signed contracts suggested that existing home sales would continue to fall after posting their ninth straight monthly decrease in october the interestrate sensitive housing sector has been hit hardest by the federal reserves swiftest increase in its policy rate since the early 1980s designed to bring down high inflation by reducing demand across the economy by the feds preferred measure inflation is still running more than three times its 2 goal having risen at its fastest pace in 40 years the fed has lifted its benchmark overnight interest rate from near zero in march to the current range of 375 to 40 compared to the last four meetings though a smaller halfpercentage point hike is expected at the end of its next policy meeting on dec 1314 with smaller increments seen into early 2023 as policymakers eye a stopping point as a result mortgage rates for which the yield on the 10year treasury note acts as a benchmark are now off their recent 20year highs the 30year fixed mortgage rate averaged 649 last week a fall of more than half a percentage point in the last four weeks according to data from the mortgage bankers association thats still well above the 318 average during the same period last year october was a difficult month for home buyers said nar chief economist lawrence yun the west region in particular suffered from the combination of high interest rates and expensive home prices