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Pending home sales fall 2.3% in July as mortgage costs bite
The NAR Pending Home Sales Index hit its lowest level since January 2026, and July contract signings were 30% below their 2019 level.
Pending home sales slid again in July, reflecting affordability pressures from elevated mortgage rates and record-high home prices, according to Mortgage News Daily. The National Association of REALTORS Pending Home Sales Index, which tracks signed contracts on existing homes, fell 2.3% from June and was down 2.2% from a year earlier, reaching its lowest reading since January 2026.
Mortgage News Daily cited NAR Chief Economist Lawrence Yun, who said the highest mortgage rates of the year arrived in the middle of summer, pulling back contract signings. He also noted that record-high prices are contributing to longer marketing times, with conditions varying by local market.
The report showed contract activity declined across all four major regions in July, with the West posting the sharpest drop at 4.7%. Compared with a year earlier, pending sales were down 7.1% in the West, down 3.0% in the South, down 0.2% in the Northeast, and up 1.7% in the Midwest.
Despite the weakness, Mortgage News Daily said the data points to pent-up demand if affordability improves. It noted that pending contracts are about 30% below their 2019 level, while payroll employment is 5% above its pre-pandemic level, suggesting many potential buyers remain on the sidelines.