Pending Home Sales Drop 5.4% in June as Mortgage Rates Climb
Event summary
- NAR's Pending Home Sales Index fell 5.4% month-over-month and 0.3% year-over-year in June 2026.
- All four U.S. regions saw monthly declines, with the Midwest (-8.9%) hit hardest.
- Year-over-year gains occurred only in Northeast (+2.2%) and Midwest (+0.3%).
- Top 10 metro areas with annual pending sales increases included Virginia Beach (+15.4%) and Sacramento (+15.2%).
- NAR cites highest mortgage rates in nearly a year and record-high home prices as key factors.
The big picture
The June decline in pending home sales reflects broader affordability challenges as mortgage rates hit near-year highs. While regional performance varies—with Northeast and Midwest showing year-over-year resilience—the national trend suggests cooling demand. The data underscores the tension between strong employment metrics and housing market accessibility, particularly for first-time buyers facing record-high prices.
What we're watching
- Affordability Crisis
- How sustained high mortgage rates and home prices will affect first-time buyer participation.
- Regional Performance
- Whether metro areas with pending sales gains can maintain momentum amid national downturn.
- Economic Indicators
- The pace at which job market strength might offset housing market headwinds.