EL7.AI
Macro EconomyMedium•16 July 2026•
1 min read

U.S. Pending Home Sales Plunge 5.4% in June, Missing Forecasts

Key Facts

1The U.S. pending home sales index fell 5.4% in June to a reading of 72.5.
2The data significantly missed economists' forecasts, which had predicted the reading to remain flat.

Amid mounting pressure from high borrowing costs, the U.S. housing sector showed signs of a sharp slowdown at the end of the second quarter. The U.S. pending home sales index fell 5.4% in June to a reading of 72.5, according to data from the National Association of Realtors. This performance significantly missed economists' forecasts, which had predicted the reading to remain flat, reflecting a notable decline in new contract signings.

This slump occurs as buyers face the dual challenges of tight inventory and mortgage rates that have hovered near 7% recently, according to Freddie Mac data. In comparison to sector peers, homebuilders like D.R. Horton have seen volatile performance, with analysts noting in recent reports that sustained high interest rates continue to dampen consumer purchasing power despite marginal improvements in housing supply levels.

Looking ahead, investors are closely monitoring the release of the Federal Reserve's Monetary Policy Report scheduled for later today, July 10, 2026, for clues on the future path of interest rates.