Having rebounded in May, the National Association of Realtors Pending Home Sales Index, a seasonally adjusted index for which 100 denotes “an average level” of activity dropped 1.9 percent in June to 112.8 and is down 1.9 percent on a year-over-year basis, a move which shouldn’t catch any plugged-in readers by surprise based on the trend in purchase loan activity.
Keep in mind that the drop in pending sales activity is despite an increase in listed inventory levels, which ticked up 3.3 percent in June, and new home inventory is nearing a 13-year high.