Home contract signings in July reached their lowest point in over two decades, with the National Association of Realtors’ Pending Home Sales Index dropping 5.5% from June. This decline, affecting all U.S. regions except the Northeast, reflects the ongoing challenges in the housing market. High mortgage rates, averaging around 6.84% in July, and limited housing supply have discouraged many potential buyers.
As a result, homeowners with mortgage rates below 6% are reluctant to sell, leading to what’s known as the “rate lock-in” effect. The median home price in July was $422,600, one of the highest on record. Many are hopeful that a potential interest rate cut by the Federal Reserve in September will bring relief to the sluggish market.
