T
he number of pending home sales in July 2025 dipped slightly, indicating that buyers remain cautious despite some easing in mortgage rates and inventory levels. According to the National Association of Realtors (NAR), contracts for existing homes fell by 0.4% from June but increased by 0.7% compared to the same period last year.

    Regional trends show a mixed picture, with sales declining in the Northeast and Midwest month-over-month, while the South remained steady and the West saw an increase. On a yearly basis, the Northeast and West experienced declines, whereas the Midwest and South showed gains.

    Lawrence Yun, NAR's Chief Economist, notes that the housing market is in a delicate balance. Even with slight improvements in mortgage rates, buyers are being deliberate due to the significant financial implications of purchasing a home. This measured sentiment is reflected in the Realtors Confidence Index, which shows 16% of members expecting higher buyer traffic over the next three months and 21% anticipating more sellers entering the market.

    While rising mortgage applications suggest that prospective buyers are preparing to enter the market, many have not yet executed contracts. Yun suggests that potential Federal Reserve moves to lower interest rates could expand the pool of eligible buyers in the coming months.

    Key statistics for July 2025 pending home sales include:

    * National: -0.4% month-over-month, +0.7% year-over-year

    * Northeast: -0.6% MoM, -0.6% YoY

    * Midwest: -4.0% MoM, +1.3% YoY

    * South: -0.1% MoM, +1.8% YoY

    * West: +3.7% MoM, -1.9% YoY