US pending home sales static
Pending home sales in the United States (US) was mostly static in June but the latest index from the National Association of Realtors (NAR) is now at its second highest reading over the last year.
Though, supply and affordability constraints prevented a bigger boost in activity from mortgage rates that lingered near all-time lows through most of the month and increases in the Northeast and Midwest were offset by declines in the South and West. Overall the NAR’s pending home sales index, a forward looking indicator based on contract signings, was up 0.2 per cent month on month and is one per cent higher than June 2015. But it is noticeably down from this year’s peak level in April.
According to Lawrence Yun, Chief Economist, NAR, a solid bump in activity in the Northeast pulled up pending sales modestly in June. He further added, “Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost six per cent from a year ago and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth,” he stated.