US Pending Home Sales Hit Record Low in July Due to High Prices and Borrowing Costs

According to BlockBeats, the measure of pending home sales in the United States fell to a historic low in July due to high prices and borrowing costs. Data released showed that the index of signed contracts dropped by 5.5% last month to 70.2, marking the lowest level since 2001. This decline exceeded economists' general expectations, reflecting a decrease in sales across all four major regions. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), stated in a release, 'The positive impact of job growth and increased inventory cannot overcome the challenges of affordability and a certain degree of wait-and-see attitude related to the upcoming US presidential election.' For nearly two years, the second-hand housing market has been sluggish due to high borrowing costs and insufficient inventory. Although mortgage rates have fallen to their lowest level in over a year this month, high home prices and limited inventory continue to deter potential buyers, who may still be waiting for even lower rates. Yun noted that a decrease in mortgage rates would undoubtedly attract buyers back into the market.