The NAR's pending home sales index in June is consistent with the soft housing market that has been the story for 2025 to-date. Homebuyers remain willing to take advantage of dips in mortgage rates to secure a mortgage and sign a contract. %e monthly average for the Freddie Mac rate for a 30-year fixed rate mortgage has been close to the 7%-mark since January with the exception of March. A mortgage near 7% seems to be a sticking point for affordability for potential homebuyers. While some buyers are opting for adjustable rate mortgages to lower initial payments, worries about an economic downturn and job security are keeping many out of the market.

The NAR pending home sales index is down 0.8 percent to 72.0 in June after 72.6 in May. The June consensus is for up 0.2 percent in the Econoday survey of forecasters. The small change suggests that existing home sales are unlikely to pick up in July when the time comes to close contracts.

The pending home sales indexes are down in three of four regions. Declines are a small 0.8 percent in the Midwest and 0.7 percent in the South, and more pronounced at down 3.9 percent in the West. The index for the Northeast is up 2.1 percent.

The consensus looks for a rise of 0.2 percent in June on the month after a 1.8 percent increase in May.

The National Association of Realtors developed the pending home sales index as a leading indicator of housing activity. Specifically, it is a leading indicator of existing home sales, not new home sales. A pending sale is one in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as the pending home sales index which measures home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month.

Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.

The National Association of Realtors moved up its publication schedule in 2011. Prior to 2011, the reference month was two months trailing the release date. In 2011, the reference month trails only by one month to the release month.