US Pending Home Sales Fall; Housing Sector Loses Momentum Again
US pending home sales fell by 2.3% month-over-month in July 2026, extending a slump following a 4.8% decline in June. This result was significantly weaker than market expectations of a 0.3% rise and marked the second consecutive month of decline.
The weakness was widespread across major US regions. Contract signings dropped most sharply in the West, followed by the South, Northeast, and Midwest. Year-over-year, pending home sales were down 2.2%, indicating that housing demand has yet to regain strength.
The National Association of Realtors identifies high mortgage rates and elevated home prices as primary pressures facing prospective buyers. These conditions are causing consumers to delay home purchases and resulting in longer times on the market for properties.
Pressure on the housing sector is also evident in the volume of pending contracts, which remains approximately 30% below pre-pandemic 2019 levels. This stands in stark contrast to US employment figures, which have surpassed pre-pandemic levels, suggesting that the labor market recovery has not yet fully translated into stronger housing demand.
While a drop in mortgage rates could help lure buyers back, the recovery process is expected to be gradual. The market requires a combination of lower borrowing costs, more affordable home prices, and stable labor market conditions before housing demand can consistently rise again.
Newsmaker Analysis: Pending home sales data coming in well below expectations adds to signs that the US economy is losing momentum in interest-rate-sensitive sectors. This sentiment tends to reinforce expectations that the Federal Reserve will hold rates steady, potentially weighing on the dollar and Treasury yields while providing support for gold. However, the ultimate impact will depend on whether the housing sector's weakness evolves into a broader economic slowdown. (gn)
Source: Newsmaker.id
