August 29, 2024 – 7:12 AM PDT
WASHINGTON (Reuters) – Contracts to buy U.S. previously owned homes dropped to a record low in July as higher prices and borrowing costs drove potential buyers from the market.
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The National Association of Realtors (NAR) said on Thursday its Pending Home Sales Index, based on signed contracts, fell 5.5% last month to 70.2, the lowest reading since the series started in 2001. Pending home sales fell in all four regions last month. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would rise 0.4%.
Pending home sales plummeted 8.5% on a year-on-year basis in July.
“The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election,” said…
