Pending home sales dropped in June, according to the National Association of Realtors. Sales remained near May’s level, the organization said, which remains the highest in more than nine years. Modest gains in the Northeast and West were offset by larger declines in the Midwest and south.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 1.8 percent to 110.3 in June but is still 8.2 percent above June 2014 (101.9). Despite last month’s decline, the index is the third highest reading of 2015 and has now increased year-over-year for ten consecutive months.
The Wall Street Journal reports that the Pending Home Sales Index is still 8.2% higher than a year ago. Economists surveyed by The Wall Street Journal had expected a 1% rise in June.
Stronger job gains have helped build momentum in the housing market this spring. Interest rates also remain at historical lows, despite ticking up in recent months.
The pace of completed existing-home sales increased 3.2% last month from May to a seasonally adjusted rate of 5.49 million, the strongest since February 2007, realtors said last week.
CNBC reports that closed sales of existing homes in June, based on contracts signed in April and May, rose 3.6 percent on a monthly basis.