Real Estate
Home›Real Estate›Residential›Pending home sales index drops to 72.5 in June, NAR sa…
Pending home sales index drops to 72.5 in June, NAR says
NAR said the month-to-month decline was broad across all regions, led by an 8.9% fall in the Midwest, as higher mortgage rates and record prices weighed on buyers.
The National Association of Realtors reported its Pending Home Sales index fell to 72.5 in June, down 5.4% from May and down 0.3% year over year.
HousingWire reported that all regions declined on a monthly basis, with the Midwest posting the biggest drop at 8.9%, followed by declines in the West, South, and Northeast. NAR’s Lawrence Yun said the combination of mortgage rates at their highest level in nearly a year and record-high national median home prices is contributing to a tepid housing market, especially for first-time buyers.
According to HousingWire, NAR noted that pending contracts are only suggestive of upcoming closed deals because of fallout rates and contract contingencies. NAR also pointed to softer demand in mortgage purchase applications, with the seasonally adjusted purchase index falling to about 157 in mid-July, the lowest since February.
HousingWire added that among the 50 largest metro areas, several saw larger annual increases, including Virginia Beach-Chesapeake-Norfolk, Sacramento-Roseville-Folsom, and Kansas City. Meanwhile, the broad-based decline in contract signings suggests the recent run-up in mortgage rates is finally affecting buyers’ wallets.