Pending home sales in the U.S. fell 0.4% in July, a larger decline than the 0.1% drop economists had expected.
Why it matters: Pending sales indicate signed contracts to buy previously owned homes, which typically close after one to two months.
The big picture: Despite the monthly decline, pending sales were up 0.7% compared to July of the previous year.
- The National Association of Realtors (NAR) reported the figures on Thursday.
Driving the news: Elevated mortgage rates continue to negatively impact the housing market, limiting buyer activity.
- Although mortgage rates have eased somewhat from this year’s highs due to expectations of Federal Reserve interest rate cuts starting in September, they remain high overall, keeping affordability a challenge.
- A slowing labor market is another factor restricting the pool of potential homebuyers, as economic uncertainties affect consumer confidence.
