US pending home sales slump in June amid affordability challenges

WASHINGTON, - Contracts to ​purchase previously owned ​U.S. homes fell more ​than expected in June as higher mortgages and house prices pushed prospective buyers ‌to the ⁠sidelines.

The ⁠pending home sales index tumbled ​5.4% last month to 72.5, the National Association ​of Realtors said on Thursday. Economists polled by Reuters had ​forecast contracts, which become ⁠sales after ‌a month or ​two, ​falling 0.5%. Contracts fell in ⁠all four regions. They slipped ​0.3% year-on-year in June.

Mortgage rates are likely to remain elevated amid renewed hostilities between the United States and Iran following the collapse of ‌a fragile ceasefire last week.


"The highest mortgage rates in nearly a ⁠year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers," said Lawrence Yun, the NAR's chief economist.