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Pending home sales fall in July as mortgage rates and prices bite
Pending contracts were 30% below their pre-pandemic 2019 level, even as payroll employment was 5% above, NAR data show.
Pending home sales weakened in July, dropping 2.3% from June and 2.2% year over year, reaching their lowest level since January 2026, the National Association of Realtors said. HousingWire noted the decline reflects elevated mortgage rates and record home prices that have pressured affordability and dampened contract signings.
HousingWire reports that the Midwest was the only region to post annual growth, while the Northeast, South and West all saw declines. The West recorded the sharpest contraction, falling 4.7% month over month and 7.1% from July 2025, while sales in the Midwest declined 0.7% month over month but rose 1.7% annually.
Across major metros, Virginia Beach-Chesapeake-Norfolk led with a 17.2% year over year increase, followed by San Antonio-New Braunfels at 11.8% and Cincinnati at 6.2%. HousingWire said Pittsburgh, Miami, Austin, Buffalo, St. Louis, Jacksonville and Columbus also recorded year over year gains.
NAR Chief Economist Dr. Lawrence Yun said the highest mortgage rates of the year hit in mid-summer, pulling back contract signings, and that record home prices are leaving homes on the market longer with fewer bidders above asking. HousingWire added that Yun pointed to potential support from employment growth and improving mortgage rates, but said the effects could take time to materialize.