US pending home sales ticked up in July by 0.9%, rising for the second month in a row despite elevated prices and rising mortgage rates, according to a report released Wednesday by the National Association of Realtors.
However, year-over-year pending transactions fell by 14%.
“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,” said Lawrence Yun, NAR’s chief economist.
Rates are rising because the economy is doing well.
“Jobs are being added, thereby enlarging the pool of prospective home buyers,” Yun said. “However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”
There was regional variation in pending home sales according to the index. Pending home sales dropped in the Northeast, down 5.8% from June; and in the Midwest, down 0.4%.
Pending sales rose in the South, up 2% from June; and the West, which was up 6.2% from June.
“The West region experienced a meaningful price decline in the past year and buyers are quickly returning, as a result,” Yun added.
This is a developing story and will be updated.
US pending home sales rose in July for the second month in a row - CNN
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