Pending home sales slid in July despite improvements in housing supply, affordability and mortgage rates as buyers remained on the sidelines, the National Association of REALTORS® said.   

The pace of sales ticked 0.4% lower month over month and 0.7% lower year over year nationwide, NAR said, adding that the West was the only geographic region to see a monthly gain, while the Midwest and South were the only areas with annual increases. 

“Even with modest improvements in mortgage rates, housing affordability and inventory, buyers still remain hesitant,” NAR Chief Economist Lawrence Yun said. “Rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract. The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible home buyers in the upcoming months.” 

Pending sales — where a contract has been signed but the transaction hasn’t yet closed — are considered a leading indicator and generally precede existing-home sales by a month or two.    

July’s REALTORS® Confidence Index, which surveys a random sample of 50,000 Realtors, pointed to a weakened market outlook for both buyers and sellers on a monthly basis: 16% of respondents expected a year-over-year increase in buyer traffic over the next three months, which is down from 17% in June, while 21% expected an annual increase in seller traffic, down from 23% a month ago. 

“Even in markets with softer prices and more inventory, many clients are holding back. The hesitation isn’t just about rates — it’s about confidence,” First American Senior Economist Sam Williamson said. “Buying a home is the biggest financial decision most people make, and uncertainty around jobs, inflation and the broader economy is keeping many on the sidelines.”