Pending-Home Sales Dip Slightly in July

In July, both existing-home and new-home sales fell, and that trend appears to be continuing with pending-home sales also down during the month. According to the National Association of Realtor’s Pending-Home Sales Report, pending-home sales fell in July by 0.4% month-over-month. However, when looking at the data on a year-over-year basis, pending sales have improved marginally by 0.7%. Still, in a recent survey from NAR, 16% of housing pros say they expect an increase in buyer traffic over the next three months, and 21% say they expect an increase in seller traffic during this time.

"Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant," said NAR Chief Economist Lawrence Yun. "Buying a home is often the most expensive purchase people will make in their lives. This means that going under contract is not a decision home buyers make quickly. Instead, people take their time to ensure the timing and home are right for them."

"Rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract. The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible home buyers in the upcoming months."