US pending home sales fall 1% in July, less than estimates

By Tuba Sahin

ANKARA (AA) - US pending home sales fell 1% month-on-month in July, less than forecasted according to the National Association of Realtors (NAR) on Wednesday.

The index of pending home sales, one of the top indicators of the health of the US housing market, posted a second consecutive month of decline in July. It was expected to fall by 4%.

On an annual basis, pending transactions sank 19.9% from a year ago.

NAR chief economist Lawrence Yun said contract signings may be at or close to the bottom.

"This month's very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at lower price points is hindering transaction activity,” he said.

Housing affordability plummeted to its lowest since 1989, according to NAR.