Pending home sales in June ascended 4.8%, according to the National Association of Realtors®. All four U.S. regions posted monthly gains in transactions. Year-over-year, the Northeast, Midwest and South registered declines, while the West increased.

The Pending Home Sales Index (PHSI)^* – a forward-looking indicator of home sales based on contract signings – grew to 74.3 in June. Year over year, pending transactions were down 2.6%. An index of 100 is equal to the level of contract activity in 2001.

“The rise in housing inventory is beginning to lead to more contract signings,” said NAR Chief Economist Lawrence Yun. “Multiple offers are less intense, and buyers are in a more favorable position.”

Pending Home Sales Regional Breakdown
The Northeast PHSI ascended 3.0% from last month to 65.5, a decline of 0.3% from June 2023. The Midwest index rose 4.7% to 73.7 in June, down 4.2% from one year ago.

The South PHSI increased 6.3% to 89.3 in June, dropping 3.9% from the prior year. The West index climbed 3.4% in June to 58.4, up 1.0% from June 2023.

“Even more inventory is expected to come onto the housing market in the upcoming months ahead of the normal, seasonal declines in the winter,” added Yun. “The Northeast’s small gain in contract signings is due to the ongoing housing shortage situation in that region, leading to stronger home price gains. It is a good time to list.” 

Despite signs that the housing market is becoming (slightly) friendlier to would-be buyers, home prices and mortgage rates remain steep. This has led to mortgage demand hovering around its lowest level in over 20 years.

Demand probably won’t spike anytime soon because, according to the newest LendingTree survey, 77% of Americans say the housing market is “prohibitively expensive.” While 21% are still considering a home purchase this summer, our findings highlight how daunting today’s market appears to most people.

• While 77% of Americans believe the housing market is prohibitively expensive in their area, 21% are still considering buying a home this summer. Gen Zers are most likely to be on the hunt for a new home this summer, with 37% considering buying.
• Among those considering buying this summer, 56% are confident they’ll be able to find and close on an affordable house that fits their needs. 44% are buying because they believe they’ll get a good deal. However, 19% don’t think a deal is possible because mortgage rates are too high.
• 86% of respondents think mortgage interest rates will rise or stay the same this summer; among them, 23% worry rates will never fall. Additionally, 87% believe home prices in their area will rise or stay the same this summer; among them, 36% think high home prices are here to stay.
• Among summertime home shoppers, their top concerns about buying now are high home prices (35%), high mortgage interest rates (27%) and finding the right house (18%). Interest rates are top of mind for current mortgage holders, as 29% feel trapped in their homes due to their current rates.

You can check out our full report here: https://www.lendingtree.com/home/mortgage/summer-homebuying-survey/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:

"All in all, there’s no denying that today’s housing market is expensive. Nonetheless, as inflation continues to cool and rates come down the market should become more affordable. On top of that, while prices and rates make buying too expensive for most at the moment, the vast majority of those who already own a home remain in a good position to keep on top of their payments and avoid foreclosure. This means that, despite headwinds, the housing market doesn’t appear headed for a crash."