Story perspectives

Pending Home Sales Drop 5.4% in June Amid High Rates

7/16/2026

Summary

Pending Sales Drop

U.S. pending home sales fell 5.4% month-over-month in June 2026, index 72.5.
The index slipped 0.3% YoY—steepest drop since Dec 2025—as the Midwest fell 8.9% and other regions fell 3-5%, while Virginia Beach-Chesapeake-Norfolk, Sacramento-Roseville-Folsom and Kansas City posted 15.4%, 15.2% and 14.4% YoY gains among 50 largest metros.
NAR chief economist Dr. Lawrence Yun said high mortgage rates and prices hurt first-time buyers, noting that a resilient labor market could sustain demand.

Summary

Builders Cut Prices

The enacted law aims to expand supply and lower costs, according to NAHB chief economist Robert Dietz.
July, 37% of builders cut prices, up from 35% in June, with discounts of 6%.
In July, 63% of builders offered sales incentives, marking the 16th straight month that over 60% used incentives.
The NAHB/Wells Fargo Housing Market Index fell to 34 in July, with confidence slipping to 34 from 36 in June.

History

Historical Context

In 2008 the U.S. housing bubble burst, home prices fell about 20% and Fed Chairman Ben Bernanke cut the federal-funds rate to 0.25% while Fannie Mae and Freddie Mac entered conservatorship. The boom from the late-1990s to 2005, fueled by equity withdrawals, set the stage. In July 2026, NAR economist Lawrence Yun and NAHB chief Robert Dietz warn high mortgage rates are depressing sales and prompting builder discounts.

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Pending Sales Drop

U.S. pending home sales fell 5.4% month-over-month in June 2026, index 72.5.
The index slipped 0.3% YoY—steepest drop since Dec 2025—as the Midwest fell 8.9% and other regions fell 3-5%, while Virginia Beach-Chesapeake-Norfolk, Sacramento-Roseville-Folsom and Kansas City posted 15.4%, 15.2% and 14.4% YoY gains among 50 largest metros.
NAR chief economist Dr. Lawrence Yun said high mortgage rates and prices hurt first-time buyers, noting that a resilient labor market could sustain demand.

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