Surprising Rise in US Pending Home Sales for Second Consecutive Month

US pending home sales increased by 0.9% in July, marking the second consecutive month of growth, despite high prices and rising mortgage rates. However, year-over-year pending transactions fell by 14%. Lawrence Yun, NAR's chief economist, noted that limited inventory and rising mortgage rates have hindered many potential buyers. Regional variations were observed, with the West experiencing a significant price decline and subsequent increase in sales. Low housing inventory and affordability challenges continue to hamper sales, while rental trends may further diminish housing demand.