Pending Home Sales Dip in July

(Chart: National Association of Realtors)

Pending home sales decreased by 2.3% in July–2.2% year-over-year–the National Association of Realtors reported yesterday.

The association said pending home sales in July fell to the lowest level since January 2026. Month-over-month pending home sales declined in all four major U.S. regions. Year-over-year pending home sales increased in the Midwest but declined in the Northeast, South and West.

“The highest mortgage rates of the year hit right in the middle of summer, and that’s pulling back contract signings,” NAR Chief Economist Lawrence Yun said. “Home prices are at record highs so houses for sale are sitting on the market longer, and fewer buyers are bidding above the asking price than a year ago, though there are large local market variations.”

Yun noted job gains should bring more buyers into the market, especially if mortgage rates stabilize or decline, “though that impact takes time to show up,” he said. “Right now, pending contracts are 30% below their pre-pandemic 2019 level, while payroll employment is 5% above. That gap points to sizable pent-up demand that should be unleashed in the coming years as more supply reaches the market and affordability improves.”