Pending home sales slip 1% in July, but realtors group says market may be ‘at or close to the bottom’

The number of signed contracts on existing homes fell from June to July. Sales were down compared to last year.

The future indicator of closed sales has fallen over the past nine months due to rising mortgage rates. The average mortgage payment increased by over 50% from a year ago.

The drop in sales could be a sign that the market has settled.

The chief economist for the association said that contract signings may be close to the bottom. The recent retreat in mortgage rates contributed to this month's decline. Lack of supply at lower price points is making transaction activity difficult.

Mortgage rates peaked in June and dropped in July. According to Mortgage News Daily, rates are approaching 6 percent again.

The Northeast's pending home sales fell for the month and were down from the previous year. Sales in the Midwest are down by more than 10% year over year.

Sales in the South fell 20% from a year ago. The West was the only region to show a monthly increase. Sales were down from July to July.