Pending Home Sales Dip 2.3% in July, Hitting Lowest Level Since January
Event summary
- Pending home sales fell 2.3% month-over-month and 2.2% year-over-year in July 2026, reaching the lowest level since January 2026.
- All four major U.S. regions saw month-over-month declines, with the West experiencing the steepest drop at 4.7%.
- Year-over-year, only the Midwest saw an increase in pending home sales (1.7%), while the Northeast, South, and West declined.
- Ten major metro areas posted year-over-year gains, led by Virginia Beach-Chesapeake-Norfolk (+17.2%) and San Antonio-New Braunfels (+11.8%).
- NAR Chief Economist Dr. Lawrence Yun attributed the decline to high mortgage rates and record home prices.
The big picture
The decline in pending home sales reflects broader challenges in the housing market, including high mortgage rates and record home prices. While job gains may eventually bring more buyers into the market, the current gap between pending contracts and payroll employment suggests significant pent-up demand that could be unleashed as affordability improves. The regional disparities highlight the importance of local market dynamics in shaping the overall housing landscape.
What we're watching
- Mortgage Rate Impact
- How sustained high mortgage rates will affect pending home sales in the coming months.
- Regional Disparities
- Whether the Midwest's year-over-year gains can offset declines in other regions.
- Pent-Up Demand
- The pace at which pent-up demand is released as affordability improves and supply increases.
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