The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes signed each month. Because contract signings precede closings, the index is considered a good indicator of future existing-home sales. In July, pending sales slowed 5.5 percent from the month before, pushing the number of signed contracts 8.5 percent below last year at the same time. Lawrence Yun, NAR’s chief economist, says buyers may be in a holding pattern. “A sales recovery did not occur in midsummer,” Yun said. “The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election.” Fortunately, mortgage rates have now fallen for four consecutive weeks, which helps affordability levels and could also help inspire late summer buyers to get into the market. (source)