Pending Home Sales Slip in June; Housing Recovery Remains Choppy Despite Retreat in Interest Rates
WASHINGTON--The number of contracts signed to buy previously-owned homes slipped in June, a sign the housing recovery remains choppy despite a retreat in interest rates.</br></br>An index of pending home sales, reflecting purchases under contract but not yet closed, fell 1.1% to a reading of 102.7 in June from May, ending three months of gains, the National Association of Realtors said Monday. The above-100 reading indicates market activity was still "average," if not robust, the trade group said.</br></br>Economists surveyed by The Wall Street Journal had forecast a 0.5% rise in June sales.</br></br>Compared with a year ago, pending-home sales were down 7.3% last month. That suggests many Americans remain unwilling or unable to enter the market despite historically low borrowing costs and a pickup in job creation. Lenders are still imposing strict lending standards, and home prices have risen sharply over the past two years. Meanwhile, Americans' incomes are growing tepidly.</br></br>Lawrence Yun, NAR's chief economist, said sales conditions have improved since the winter as price gains have eased and more homes have come on the market. "However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates," Mr. Yun said in a statement.