Pending home sales declined 8.6% in June amid escalating mortgage rates and housing prices, the National Association of Realtors reported. Compared with June 2021, pending home sales declined 20.0%.
“Contract signings to buy a home will keep tumbling down as long as mortgage rates keep climbing, as has happened this year to date,” NAR Chief Economist Lawrence Yun said in a statement. “There are indications that mortgage rates may be topping or very close to a cyclical high in July. If so, pending contracts should also begin to stabilize.”
All four regions reported declines in contract signings, with the West reporting the largest dip, 15.9%. The South slid 8.9% while the Northeast and Midwest fell 6.7% and 3.8%, respectively.
The full NAR report can be found here.
