Pending home sales fell in July by one percent, according to data compiled by the National Association of Realtors.
This was less than the three percent decline forecast by economists. Mortgage rates fell in July from nearly 6 percent of fixed rate 30-year loans at the start of the month to below five percent at month’s end. That likely attracted some buyers back into the market.
Sales fell 8.6 percent in June and have fallen in eight of the last nine months. Sales were up in May when interest rates dipped after rising in the prior month.
“We may be at or close to the bottom in contract signings,” said Lawrence Yun, chief economist for the NAR. “This month’s very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at lower price points is hindering transaction activity.”
Compared with a year ago, pending home sales are down 19.9 percent.
The pending home sales index records contract signings, which typically lead to closed sales in 45 to 60 days.
Mortgage rates are climbing once again, which could set the market up for another steep drop in late summer.
Read the full article here
Discussion about this post