But Pending Sales are Up

According to the National Association of Realtors, the Pending Home Sales Index (a forward-looking indicator based on signed contracts) climbed 3.3 percent to 105.9 in July and is at its highest level since August 2013 (107.1).

For buyers, the news is good.  Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” he said. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”