US pending home sales slump in June amid affordability challenges

WASHINGTON, July ‌16 (Reuters) - Contracts ​to ​purchase previously owned U.S. homes fell more than expected ‌in June as higher mortgages ⁠and house prices pushed prospective buyers to ‌the sidelines.

The pending ‌home sales index tumbled 5.4% last month to 72.5, the National ​Association of Realtors said on Thursday. Economists polled by Reuters ⁠had forecast contracts, which become sales after a ​month or two, falling 0.5%. Contracts fell in all four ​regions. They slipped 0.3% ‌year-on-year in June.

Mortgage rates are likely to remain ⁠elevated amid renewed hostilities between the United States and Iran following the ⁠collapse of a fragile ceasefire last week.

"The ​highest mortgage rates in nearly a year and the record-high national median home price ‌together are contributing to a tepid housing market that ‌is especially difficult for ⁠first-time homebuyers," said ‌Lawrence Yun, the ​NAR's chief economist.

(Reporting by Lucia Mutikani; Editing by Andrea ‌Ricci)

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