After a contract to buy a home is signed, that home’s sale is considered pending until it closes weeks later. Because signings precede closings by several weeks, they are considered a reliable indicator of future home sales. That’s why the National Association of Realtors tracks them each month. In July, the NAR’s Pending Home Sales Index found contract signings up 0.9 percent from the month before. It was the second consecutive month of gains. Lawrence Yun, NAR’s chief economist, says the improvement is a sign that buyer demand remains strong, despite current market challenges. “The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home buying offers,” Yun said. “Jobs are being added and, thereby, enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.” (source)
