The National Association of Realtors' (NAR) index measuring pending contracts for home sales increased just 0.2 percent from October to November and fell 1.6 percent year-over-year. Industry analysts expect higher mortgage rates and tightening lending standards in 2014 to weaken the housing industry, which is expected to finish 2013 with the best sales totals in seven years.

Pending home sales fell year-over-year in November, according to a National Association of Realtors index, and could indicate softer growth in the new year.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, reached 101.7 in November, 1.6 percent below November 2012's 103.3 reading. The index inched up 0.2 percent from a downwardly revised 101.5 in October. Monthly increases in the South and West offset declines in the Northeast and Midwest.

An index of 100 is equal to the average level of contract activity during 2001, when the volume of existing-home sales fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. The data reflect contracts but not closings.

"Although the final months of 2013 are finishing on a soft note, the year as a whole will end with the best sales total in seven years," said NAR chief economist Lawrence Yun. "We may have reached a cyclical low, because the positive fundamentals of job creation and household formation are likely to foster a fairly stable level of contract activity in 2014."

Yun said the market still favors buyers in most of the country, but higher mortgage interest rates in combination with strong price gains mean a more modest growth in values is expected in 2014.

Total existing home sales in 2013 are projected to reach 5.1 million, a gain of almost 10 percent over 2012, according to the NAR report. Sales levels are expected to stay at that level in 2014, and rise to 5.3 million in 2015.

The national median existing home price in 2013 will be close to $197,300, up nearly 12 percent from 2012, and is projected to grow at a more moderate pace of 5 to 5.5 percent in 2014, and followed by 4 percent growth in 2015.