by This marked the lowest level since January according to the National Association of Realtors
WASHINGTON – Pending home sales fell 2.2% from July 2025 according to the National Association of Realtors, marking the lowest level since January.
Pending sales, which represent number of homes under contract, also declined 2.3% from June. This is a gauge of existing home sales activity in the weeks and months ahead as it typically takes one to two months for the sales to close from the time of the contract signing, officials note.
Year-over-year pending home sales fell in the Northeast, South and West, but rose in the Midwest, while month-over-month pending sales declined in all four regions.
Officials cited current mortgage rate levels as one of the factors leading to the decline. According to Freddie Mac, the average for a 30-year fixed rate loan was 6.66% the week ending July 30, which was up from 6.58% the same period a year earlier.
“The highest mortgage rates of the year hit right in the middle of summer, and that’s pulling back contract signings,” said NAR Chief Economist Dr. Lawrence Yun in a statement. “Home prices are at record highs so houses for sale are sitting on the market longer, and fewer buyers are bidding above the asking price than a year ago, though there are large local market variations.”
He noted that improvements in hiring should bring more buyers into the market, particularly if mortgage rates decline in the weeks and months ahead.
“That impact takes time to show up,” Yun noted. “Right now, pending contracts are 30% below their pre-pandemic 2019 level, while payroll employment is 5% above. That gap points to sizable pent-up demand that should be unleashed in the coming years as more supply reaches the market and affordability improves.”
For the industry, this means that sales could be tepid in the late summer, or until actual homebuying activity picks up. The impact on Labor Day sales activity is thus uncertain, although the actual sales of existing homes rose slightly – .7% – from July 2025, while falling 1.7% from June.
By region pending home sales activity in July was as follows:
+ In the Northeast, they fell .2% from July 2025 and fell 2% from June
+ In the Midwest, they rose 1.7% from July 2025 and declined .7% from June
+ In the South, they declined 2% from July 2025 and declined 2% from June
+ In the West they declined 7.1% from July 2025 and declined 4.7% from June.
The NAR report also identified some of the largest 50 metropolitan areas that posted year-over-year increases in pending home sales.
They include:
+ Virginia Beach-Chesapeake-Norfolk, VA-N.C. (+17.2%)
+ San Antonio-New Braunfels, TX (+11.8%)
+ Cincinnati, OH-KY-IN (+6.2%)
+ Pittsburgh, PA (+3.7%)
+ Miami-Fort Lauderdale-West Palm Beach, FL (+2.4%)
+ Austin-Round Rock-San Marcos, TX (+1.6%)
+ Buffalo-Cheektowaga, NY (+1.3%)
+ St. Louis, MO-IL (+1.2%)
+ Jacksonville, FL (+1.2%)
+ Columbus, OH (+0.2%)
That’s potentially good news for retailers in these areas. However, to turn that increase into sales, they may need to boost marketing efforts in the coming weeks, particularly during the Labor Day sales period as many consumers planning to move into those homes will be on the hunt for furniture.
