June Pending Home Sales Decline 2.8% Year-Over-Year Amidst Rising Rates

June Pending Home Sales Data

• 📉 Pending home sales in June decreased by 0.8% from May and were down 2.8% year-over-year, slightly below expectations.
• 📝 These figures are based on signed contracts for existing homes, reflecting activity from buyers in June.

Market Conditions and Influences

• ⚠️ The average rate on a 30-year fixed mortgage dipped slightly in June, which home builders noted brought in more buyers.
• 📈 However, rates popped back up in July, impacting the market further.
• 🏠 Sales declined despite a nearly 29% increase in active listings, partly because homes are sitting longer without selling.
• ⚠️ There was a pullback in new listings in June.

Regional Performance and Mortgage Applications

• 🚫 Sales dropped in all regions except the Northeast, which is notable given that home price growth has been strongest there.
• 📊 Mortgage applications to buy a home dropped last week and are down 5% over the past four weeks.