The US pending home sales tumbled in June

The US pending home sales tumbled in June

The US pending home sales tumbled in June and fell about 8.6%. It is more than expectations and estimated, according to the data released by the National Association of Realtors (NAR) on 27 July 2022.

It was expected that US home sales will reveal a monthly decline of 1.5% in June.

The index of home sales is considered one of the top indicators of US housing markets.

The contract rate at a 30 -year fixed rate mortgage averages 5.54%, according to data from the Freddie Mac mortgage financing agency. The rate has increased more than 200 basis points since January as inflation shot and the Federal Reserve hardened monetary policy aggressively.

The real estate market is one of the most sensitive sectors of interest rates. Last week’s data showed that previously property sales fell for a fifth consecutive month in June, and housing beginnings and construction permits also decreased more last month. However, a collapse is unlikely due to serious home scarcity.

The softening of demand could however help bring the housing supply and demand back into alignment and slow down prices. Housing prices have maintained their two-digit growth on an annual basis in May, according to reports revealed on Tuesday.

The US pending home sales tumbled in June