Breaking the tie between new (down) and existing (up) home sales, pending home sales tumbled 2.5% MoM in July (notably below the expectation of 0.0%) and stumbled back into contraction year-over-year.
All regions fell in July:
Northeast fell 1.6%; June rose 2.7%
Midwest fell 2.5%; June rose 3.3%
South fell 2.4%; June rose 1.3%
West fell 3.4%; June rose 5.4%
Pending Home Sales retreated back into contraction YoY (by 0.3%)...
“Super-low mortgage rates have not yet consistently pulled buyers back into the market,” Lawrence Yun, NAR’s chief economist, said in a statement.
“Economic uncertainty is no doubt holding back some potential demand, but what is desperately needed is more supply of moderately priced homes.”
Pending home sales are often considered a leading indicator of existing-home purchases and a measure of the health of the residential real estate market in coming months.