P
ending home sales in the United States hit a record low in July due to higher prices and borrowing costs pushing potential buyers out of the market. According to the National Association of Realtors, their Pending Home Sales Index, which is based on signed contracts, decreased by 5.5% last month compared to June, reaching a low of 70.2 since the series began in 2001. This decrease was observed across all four regions of the country. The year-on-year basis showed an 8.5% drop in pending home sales. Economists polled by Reuters had predicted a 0.4% increase in contracts, which typically lead to sales after a month or two.

    The NAR's chief economist, Lawrence Yun, attributed the decline to affordability challenges and some degree of uncertainty related to the upcoming presidential election. As a result, sales activity is expected to remain subdued. A recent survey conducted by the Conference Board in August showed that the share of consumers planning to purchase a house within the next six months was at its lowest since early 2013. Despite elevated house prices, the pace of increases has slowed down. The Federal Housing Finance Agency reported on Tuesday that house prices rose by 5.1% on a year-on-year basis in June, which is the smallest increase in nearly a year, following a 5.9% rise in May.