Pending home sales fell a lot more than expected in June, according to the latest data from the National Association of Realtors…(NAR)
- M-O-M: The Pending Home Sales Index fell 8.6% to 91.0 in June, an index of 100 is equal to the level of contract activity in 2001.
- Y-O-Y: The index was down 20.0% when compared to the same time last year.
SWING & A MISS: Economists had projected a much smaller 1.5% drop for the month.
Not surprisingly, the South continues to dominate with an index of 108.3 even after an 8.9% monthly drop, the South is now down 19.3% year-over-year.
- The Midwest was second with an index of 93.7 (-3.8%) followed by the Northeast at 80.9 (-6.7%) and the West at 68.7 (-15.9%). The West not only saw the biggest monthly drop, it also was down the most year-over-year at 30.9%.
Lawrence Yun, NAR Chief Economist, said contract signings will continue to fall as rate continue to climb. However, he also noted “There are indications that mortgage rates may be topping or very close to a cyclical high in July. If so, pending contracts should also begin to stabilize.”
NOTE: An unreal stat from NAR. “buying a home in June was about 80% more expensive than in June 2019.”