Pending Home Sales Retreat in July as Mortgage Rates Hit 2026 High

Pending home sales continue to lag month over month and year over year, as mortgage rates reached their highest level so far this year.Contract signings on existing homes fell 2.3% in July from the prior month, with declines in all four regions, the National Association of Realtors reported Tuesday. Zooming out further, pending sales fell 2.2% year over year, with gains in the Midwest but declines in the Northeast, South, and West.The NAR's Pending Home Sales Report tracks the volume of contract signings on existing homes. A sale is listed as pending when a contract has been signed, but a sale has not yet been finalized. The pending home sales rate is a leading indicator of the housing sector's health as it helps predict the rate of home sales a month or two later. The latest report confirms extends the decline in pending home sales registered in June, though the decline varied somewhat across regions.In the Northeast, pending home sales fell 2% month over month and dropped slightly by 0.2% year over year. Pending home sales in the Midwest saw a 0.7% decrease from the previous month, but rose by 1.7% compared to last year. In the South, pending home sales fell 2.2% month over month...