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Pending home sales slipped in June as mortgage rates and prices weighed
The Pending Home Sales Index fell 5.4% from May, and the Northeast had the smallest regional drop at 3.0% versus the Midwest's 8.9%.
Pending home sales declined in June as higher mortgage rates and record-high home prices continued to cool buyer demand, according to Mortgage News Daily. The National Association of Realtors' Pending Home Sales Index, which tracks signed contracts on existing homes, fell 5.4% from May and was down 0.3% from a year earlier.
NAR Chief Economist Lawrence Yun said affordability remains a major hurdle for prospective buyers, pointing to the highest mortgage rates in nearly a year alongside a record-high national median home price. He also noted that job growth could help support housing demand, while pending sales should be viewed as a forward indicator of future closings rather than a direct measure of completed transactions.
Regional contract activity weakened across all major areas. The Northeast posted the smallest monthly decline at 3.0%, while the Midwest saw the largest drop at 8.9%, with the South down 4.1% and the West down 4.7%.
Year over year, pending sales rose 2.2% in the Northeast and 0.3% in the Midwest, while the South and West fell 0.9% and 1.1% respectively. Even with the national slowdown, several metro areas continued to outperform, including Virginia Beach, Sacramento, Kansas City, Richmond, and Buffalo among the 50 largest markets.