U.S. Pending Home Sales Fall More Than Expected In July

(RTTNews) - A report released by the National Association of Realtors on Thursday showed pending home sales in the U.S. fell by more than expected in the month of July.

NAR said its pending home sales index decreased by 0.4 percent to 71.7 in July after sliding by 0.8 percent to 72.0 in June. Economists had expected pending home sales to edge down by 0.1 percent.

The bigger than expected decline by pending home sales largely reflected weakness in the Midwest, where pending home sales plunged by 4.0 percent.

Pending home sales also fell by 0.6 percent in the Northeast and slipped by 0.1 percent in the South, while pending home sales in the West surged by 3.7 percent.

Despite another monthly decrease, NAR noted pending home sales in July were up by 0.7 percent compared to the same month a year ago.

"Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant," said NAR Chief Economist Lawrence Yun.

"Buying a home is often the most expensive purchase people will make in their lives," he added. "This means that going under contract is not a decision homebuyers make quickly. Instead, people take their time to ensure the timing and home are right for them."

On Monday, the Commerce Department released a separate report showing new home sales in the U.S. decreased from an upwardly revised level in the month of July.

The Commerce Department said new home sales fell by 0.6 percent to an annual rate of 652,000 in July after surging by 4.1 percent to an upwardly revised rate of 656,000 in June.

Economists had expected new home sales to climb by 0.5 percent to an annual rate of 630,000 from the 627,000 originally reported for the previous month.