The index of pending U.S. home sales dropped 5.5% to 70.2 in July, marking the index’s lowest level since records began in 2001.
High home prices and elevated borrowing costs are deterring buyers from moving forward on home purchases, despite recent declines in mortgage rates. Sales decreased in all four major U.S. regions, with the Midwest and South experiencing the largest drops in activity.
Job growth and higher inventory couldn’t overcome affordability challenges, and the upcoming U.S. presidential election is causing some buyers to wait and see what happens with interest rates going forward.
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