Pending home sales in the United States dropped by 0.4% in July amid higher mortgage rates and a slump in the Northeast, according to the National Association of Realtors (NAR).
The Northeast, Midwest, and South all reported month-over-month declines. Total pending sales were up 0.7% year-over-year, however.
“Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant,” said NAR chief economist Lawrence Yun.
“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.”
The Northeast reported 0.6% decreases on both a monthly and annual basis, and saw the second-lowest home-buying contract activity last month. The Midwest posted a 4.0% drop from June, but has risen by 1.3% year-over-year.
The South had the highest home-buying contract activity last month, according to the NAR. Pending home sales declined by 0.1% from June, and are up 1.8% year-over-year.
The West’s contract activity was the lowest in the U.S., but the region reported the largest monthly increase in July, at 3.7%. Year-over-year, pending sales are down 1.9%.
New U.S. home sales last month dropped by 0.6% from June and 8.2% year-over-year, though existing home sales were up 2.0% on a monthly basis.
U.S. housing prices last quarter remained unchanged from 2025’s first quarter, and reported their slowest growth rate in around two years in June.
New York, Connecticut, and New Jersey, all northeastern states, saw the largest year-over-year housing price increases last quarter. New York City also posted the greatest increases among metropolitan areas in June.
