US pending home sales saw a marginal monthly increase in August, yet activity remains 4.7% below year-ago levels as elevated mortgage rates and rising energy costs continue to suppress housing market momentum.
Oil prices rose, contributing to higher mortgage rates and reduced housing contract signings.
Pending home sales edged up 0.3% in August as buyers navigated a challenging interest rate environment. Despite the monthly gain, contract signings remain 4.7% lower than last year, reflecting the persistent impact of mortgage rates hovering near 7% and rising oil prices.
Pending home sales track contracts signed before a transaction is officially recorded, providing an early signal of future home sales activity.
Mortgage rates are rising in tandem with bond yields and oil prices, fueled by concerns over US national debt and geopolitical tensions.