Pending home sales dropped 2 percent between July and August, with three out of the four major regions in the United States experiencing monthly declines, according to new data from NAR.

Join industry visionaries Pete Flint, Spencer Rascoff, Ryan Serhant and more at Inman Connect New York, Jan. 24-26. Punch your ticket to the future by joining the smartest people in real estate at this must-attend event. Register here.

Pending home sales sagged for the third straight month in August, according to the National Association of Realtors.

Pending home sales — a forward looking indicator of the health of the housing market based on contract signings — dropped 2 percent between July and August, with three out of the four major regions in the United States experiencing monthly declines, according to data released Wednesday.

The Northeast pending home sales index fell 3.4 percent last month to 76.6 a 19 percent drop from the previous year, the Midwest index fell 5.2 percent to 88.4, a 21.1 percent drop from the previous year and the South index dropped 0.9 percent to 105.4. The West was the only region to record an increase in pending sales, rising 1.4 percent to 71, but was down 31.3 percent from August 2021.

Year over year, pending transactions were down 24 percent, according to the NAR, spurred by steeply rising mortgage rates.

“The direction of mortgage rates – upward or downward – is the prime mover for home buying, and decade-high rates have deeply cut into contract signings,” NAR Chief Economist Lawrence Yun. said in a statement. “If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize.”

Yun predicted mortgage rates would continue to fluctuate and stagnate the economy for the rest of the year.

“Only when inflation calms down will we see mortgage rates begin to steady,” he said.

With some markets seeing the typical home payment double from where it stood a year ago, many home sellers will have to continue dropping their prices, Bright MLS chief economist Lisa Sturtevant said.

“It is clear that sellers need to modify their price expectations in this slower market environment, but it can be a slow adjustment,” she said.

Developing 

Email Ben Verde

NAR
Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×