The National Association of Realtors’ pending sales index fell 1.3% in July after a fractional decline in June.
“Higher mortgage interest rates and rising home prices are impacting monthly contract activity in the high-cost regions of the Northeast and the West,” said NAR chief economist Lawrence Yun.
He noted the number of contract signings in the South rose 2.6% and fell just 1% in the Midwest.
NAR’s pending sales index fell to 109.5% in July from 110.9% in June. The index is up 6.7% from a year ago.
The index tracks the number of sales contracts signed that could turn into actual sales in a month or two. But they don’t always translate into actual sales.
In July, existing home sales jumped 6.5% as rising interest rates provided a strong incentive for buyers to close the deals.