The National Association of Realtors' leading indicator of future home sales slipped 1.3% in July, after rising the two previous months, which does not bode well for closings in August and September.
The Realtors reported Monday that its pending sales index fell to 89.7 in July from 90.9 in June. The PSI is based on contracts signed in July, but the mortgages generally do not close for another 30 to 60 days.
NAR said roughly 16% of sales contracts are canceled before closing -- generally due to low-ball appraisals.
In June, the pending sales index for June rose 2.3%, but then actual sales of single-family existing home sales fell 3.5% in July.
Meanwhile, NAR economists have revised their sales forecast for the third quarter downward by 3.8% to a 4.75 million seasonally adjusted rate. The trade group revised fourth quarter existing home sales down by 2% to a 4.98 million annualized rate.
