Contract signings fell in July, reversing course after two consecutive months of gains, the National Association of REALTORS® reported on Thursday. All four major regions of the U.S. posted declines in pending home sales last month, with the West leading in the greatest month-over-month drop in contract signings.
Overall, NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 2.5% in July to a reading of 105.6. Still, it remains only 0.3% below year-ago levels.
“Super-low mortgage rates have not yet consistently pulled buyers back into the market,” says Lawrence Yun, NAR’s chief economist. “Economic uncertainty is no doubt holding back some potential demand, but what is desperately needed is more supply of moderately priced homes.”