Pending Home Sales Show Mixed Signals as U.S. Buyers Remain Cautious

Pending home sales edged down in July 2025, signaling continued buyer caution despite modest improvements in mortgage rates and inventory, according to the National Association of Realtors (NAR). Contracts for existing homes fell 0.4% from June but were 0.7% higher than a year earlier, NAR’s Pending Home Sales Report showed.

The data reveal divergent trends across the country. Sales in the Northeast and Midwest slipped from the previous month, while the South held steady and the West saw a gain. On a year-over-year basis, the Northeast and West registered declines, contrasted by increases in the Midwest and South.

“The housing market remains in a delicate balance,” said Lawrence Yun, NAR’s Chief Economist. “Even with mortgage rates easing slightly, buyers remain deliberate. Purchasing a home is often the largest financial decision of their lives, so many take their time to make sure both timing and property fit their needs.”

NAR’s July Realtors Confidence Index reflected this measured sentiment. Sixteen percent of members anticipate higher buyer traffic over the next three months, unchanged from last year, while 21% expect more sellers entering the market, up from 17% in July 2024.

Rising mortgage applications for home purchases suggest that more prospective buyers are preparing to enter the market, though many have not yet executed contracts. Yun noted that potential Federal Reserve moves to lower interest rates could expand the pool of eligible buyers in the months ahead.

July 2025 Pending Home Sales

• National: -0.4% month-over-month, +0.7% year-over-year
• Northeast: -0.6% MoM, -0.6% YoY
• Midwest: -4.0% MoM, +1.3% YoY
• South: -0.1% MoM, +1.8% YoY
• West: +3.7% MoM, -1.9% YoY