Pending Home Sales Hit Record Low in July

Pending home sales in the U.S. unexpectedly fell by 5.5% in July, marking the lowest level since the index began in 2001, according to the National Association of Realtors (NAR). This decline was attributed to ongoing affordability challenges and uncertainty surrounding the upcoming presidential election, which overshadowed positive factors like job growth and increased inventory. All four U.S. regions experienced decreases in pending home sales, with the Midwest and South seeing the steepest drops of 7.8% and 6.5%, respectively. In contrast, new home sales surged by 10.6% in July, driven by lower mortgage rates and ample inventory. Despite the overall slump, the Northeast region showed resilience with a year-over-year increase in contract signings. Analysts suggest that while current conditions are challenging, falling mortgage rates may eventually attract more buyers back into the market.