Pending home sales during July were down by 0.4% month-over-month but were up 0.7% year-over-year, according to the National Association of Realtors (NAR).
On a regional basis, pending sales were down in the Northeast and Midwest from June into July, but were up in the West and flat in the South. On a year-over-year basis, decreased in the Northeast and West but increased in the Midwest and South.
NAR added that its Realtors Confidence Index survey in July found 16% of its members expecting an increase in buyer traffic over the next three months, unchanged from one year ago, while 21% expected an increase in seller traffic, up from 17% in July 2024.
“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 homebuyers 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 homebuyers in the upcoming months.”
