US pending home sales fall 5.5% in July

By Ovunc Kutlu

ISTANBUL (AA) - US pending home sales decreased 5.5% in July, according to data released Thursday by the National Association of Realtors (NAR).

The market expectation for the figure was to show an increase of 0.2%.

Pending home sales for June were unrevised at a gain of 4.8%.

The pending home sales index, which is a forward-looking indicator of home sales based on contract signings, declined to 70.2 in July -- the lowest reading since the index began tracking in 2001.

"A sales recovery did not occur in midsummer," said Lawrence Yun, NAR’s chief economist. "The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election."

Pending transactions, meanwhile, were down 8.5%, compared to the same month last year.

Pending home sales declined in all US regions on a monthly basis, the NAR said in its statement.

"Current lower, falling mortgage rates will no doubt bring buyers into market," said Yun.