Pending home sales continue to retreat from multiyear highs as rising interest rates and home prices impact homebuyers across the nation. However, the chief economist at the National Association of Realtors does not believe the slowdown is anything to worry about yet.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 1.3 percent to 109.5 in July compared to 110.9 in June, according to the NAR. After posting its strongest pace since 2006 in May, the index has now declined for two consecutive months.
Compared to last year, the index is 6.7 percent higher. Pending sales have now been above year-ago levels for 27 consecutive months. An index reading of 100 equals the average level of contract signings in 2001.