US Pending Home Sales Tumble 5.5% to Record Low in July

Pending home sales in the U.S. dropped by 5.5% in July, according to the National Association of Realtors (NAR), marking the lowest level since the index began in 2001. The decline affected all four major U.S. regions, with the Northeast seeing a year-over-year increase. The NAR's Pending Home Sales Index (PHSI) fell to 70.2, reflecting affordability challenges and rising borrowing costs.

NAR Chief Economist Lawrence Yun pointed to affordability issues and uncertainty related to the upcoming U.S. presidential election as key factors behind the decline. The Conference Board survey also indicated that consumer intent to purchase homes in the next six months is at its lowest since early 2013. The PHSI drop was greater than economists had predicted, and the overall market outlook remains subdued amid these ongoing challenges.