U.S. Pending Home Sales Rebound in June

WASHINGTON (Reuters) – Contracts to buy previously owned homes in the U.S. saw a significant rebound in June, driven by increased supply and a moderation in mortgage rates, encouraging buyers.

The National Association of Realtors (NAR) reported on Wednesday that its Pending Home Sales Index, which is based on signed contracts, surged by 4.8% last month, reaching 74.3. Notably, pending home sales increased across all four regions.

Economists surveyed by Reuters had anticipated a 1.5% rebound in contracts, which typically convert to sales after one to two months. However, pending home sales dropped by 2.6% compared to June of the previous year.

NAR Chief Economist Lawrence Yun noted, “The rise in housing inventory is beginning to lead to more contract signings.”

Mortgage rates have seen a decline following their spike in spring, while the pace of house price increases has slowed. Despite this rebound in pending home sales, a substantial increase in actual home sales remains unlikely.

In related news, a Conference Board survey revealed that the proportion of consumers planning to purchase a house in the next six months fell in July to its lowest level since February 2013.

Additionally, the Federal Housing Finance Agency announced on Tuesday that home prices experienced a year-on-year increase of 5.7% in May, marking the smallest gain in the last ten months after a 6.5% rise in April.