U.S. Pending Home Sales Decrease by 5.4% in June

Pending home sales in the U.S. fell by 5.4% in June compared to the previous month. The weakening of contract indicators, which move 1-2 months ahead of existing home sales, has impacted the housing market due to high interest rates and housing price burdens. According to the National Association of Realtors (NAR), pending home sales in June decreased by 0.3% year-over-year. The June figures showed declines of 3.0% in the Northeast, 8.9% in the Midwest, 4.1% in the South, and 4.7% in the West, indicating a downward trend across all major regions. While the Northeast and Midwest saw increases of 2.2% and 0.3% respectively, the South and West experienced decreases of 0.9% and 1.1%. NAR Chief Economist Lawrence Yun noted that high mortgage rates and housing prices are creating challenges for first-time homebuyers. The July housing market index stood at 34, below the baseline of 50, with the current sales conditions index at 37, the six-month sales expectations index at 43, and the potential buyer traffic index at 23. The average 30-year fixed mortgage rate was 6.58% on July 23, 6.66% on July 30, 6.69% on August 6, and 6.67% on August 13. According to Realtor.com's July report, the national median listing price was $428,950, a 2.4% decrease from the previous year, while pending sales increased by 1.3%.