Pending Home Sales Fell in July

U.S. pending home sales fell in July, according to the National Association of Realtors. The pending home sales index—used as a leading indicator based on contract signings—dropped 2.3% to 71.2. Economists surveyed by The Wall Street Journal had expected a 0.6% increase. NAR Chief Economist Dr. Lawrence Yun linked the decline to the highest mortgage rates of the year arriving in the middle of summer, pulling back contract signings. Regionally, the West saw the sharpest month-over-month decline, down 4.7%, while the Northeast fell 2%. On a year-over-year basis, pending home sales decreased 2.2%. Yun also noted homes are sitting longer as prices remain at record highs.