Realtors Report Dip in Buyer Interest in July

The Realtors leading indicator of future home sales edged down in July for the second month in row as potential buyers moved to the sidelines due to rising home prices and higher mortgage rates.

The National Association of Realtors pending sales index fell 1.3% in July after a fractional decline in June.

Higher mortgage interest rates and rising home prices are impacting monthly contract activity in the high-cost regions of the Northeast and the West, said NAR chief economist Lawrence Yun.

He noted the number of contract signings in the South rose 2.6% and fell just 1% in the Midwest.

NARs pending sales index fell to 109.5% in July from 110.9% in June. The index is up 6.7% from a year ago.

The index tracks the number of sales contracts signed that could turn into actual sales in a month or two. But they dont always translate into actual sales.

In July, existing home sales jumped 6.5% as rising interest rates provided a strong incentive for buyers to close the deals.

Article source: http://www.nationalmortgagenews.com/dailybriefing/realtors-report-dip-in-buyer-interest-in-july-1038456-1.html

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