Pending home sales rose 0.9% in July to a level of 77.6, marking the second consecutive month of contract signing growth, according to the National Association of Realtors.
“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home buying offers,” NAR Chief Economist Lawrence Yun said in a statement. “Jobs are being added and, thereby, enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”
Regionally, pending home sales increased 2.0% in the South and 6.2% in the West. Pending home sales declined 5.8% in the Northeast and 0.4% in the Midwest. Compared with July 2022, pending home sales were down in every region.
A Pending Home Sales Index of 100 is equal to the level of contract activity in 2001, according to NAR.
