M
ortgage rates continued to decline, a positive sign for the market. However, new listings lost momentum in June due to ongoing economic uncertainty. Key points:

    * Pending home sales increased by 1.8% between April and May, defying forecasts of a year-over-year drop.

    * Mortgage rates dropped for the fourth straight week, with the 30-year fixed-rate mortgage averaging 6.77%.

    * New listings are losing momentum, and pending sales appear sluggish in June.

    * The real estate market remains slow for this time of year, but economic data suggests it could improve over the summer.

    Lawrence Yun, NAR's chief economist, attributed the rise in pending sales to steady job gains and rising wages. However, mortgage rate fluctuations are a primary driver of homebuying decisions.

    Mortgage rates continue to drop due to investors pricing in interest rate cuts, possibly starting in September. This optimism has reduced pressure on mortgage-backed securities, allowing rates to slide slightly.

    There was an uptick in mortgage applications this week, driven by refinance applications. Purchase applications were down compared to one week prior but up 12% compared to a year ago.

    Despite the positive economic indicators, new listings are losing momentum, and pending home sales dipped 2.3% year-over-year for the four weeks ending on June 22. Many sellers are holding off due to the prime selling window passing.

    Redfin's Homebuyer Demand Index was up 6% over the past two weeks, indicating a mixture of hope and fear in today's real estate market. Fears about economic deterioration are fueling hesitation among households to make large purchases.