1. Pending sales declined 0.4% in July versus June, but up 0.7% year-over-year. 2. Mortgage rates increased to 6.75% in July but fell to 6.51% in August. 3. Buyer hesitance leads to a 15% contract cancellation rate, highest since 2017. 4. Regional sales varied: Northeast and Midwest down, South flat, West up. 5. Economists note affordability challenges and buyer uncertainty affecting housing market.
A decline in pending home sales often signals slowed economic growth, impacting S&P 500. Similar patterns in past housing downturns have negatively affected market indices.
The data highlights economic conditions indirectly affecting many S&P 500 companies relying on consumer spending. The housing market's health often foreshadows economic trends impacting broader markets.
Immediate effects are likely due to consumer sentiment shifts, affecting spending and investment. Historical cases show rapid impacts from housing market indicators on broader market performance.