US pending home sales fell 2.3% month-over-month in July 2026, following a downwardly revised 4.8% decline in June and defying market expectations for a 0.3% increase. This was the second consecutive monthly drop, with contract signings decreasing in all four major regions: the West (-4.7%), the South (-2.2%), the Northeast (-2.0%), and the Midwest (-0.7%).
On a year-over-year basis, pending home sales were down 2.2%. Declines in the West (-7.1%), the South (-3.0%), and the Northeast (-0.2%) outweighed stronger activity in the Midwest, where pending sales rose 1.7%.
According to NAR Chief Economist Lawrence Yun, elevated mortgage rates and record-high home prices continue to dampen housing demand, leading to fewer contract signings and longer listing times. He added that while stronger employment could help draw buyers back if mortgage rates ease, any recovery is likely to be gradual. Yun also noted that pending contracts remain about 30% below pre-pandemic 2019 levels, even as payroll employment stands roughly 5% higher.
