What did pending home sales look like in July 2025?
With more homes available on the market, buyer and seller traffic could increase over the next three months, according to a report released today by the National Association of REALTORS® (NAR). This is despite a slight rise in mortgage rates and a dip in pending homes sales for July.
Lawernce Yun, NAR’s chief economist, indicated he believes the dip in pending home sales is due to potential buyers being more selective when shopping.
“Buying a home is often the most expensive purchase people will make in their lives,” Yun said. “This means that going under contract is not a decision homebuyers make quickly. Instead, people take their time to ensure the timing and home are right for them."
But not every market saw hesitant buyers. Pending home sales in the West saw an increase from the previous month. And despite their dip from the previous month, the South and Midwest noticed an increase in their pending home sales compared to last year.
Which regions showed changes in pending home sales?
The West showed an increase in pending sales in July from the previous month, while the South, Midwest and Northeast all saw a decrease in pending sales compared to according to the NAR.
- The West saw a 3.7% rise in pending home sales compared to the previous month, and a 1.9% drop from last year.
- There was a 0.1% drop in the South’s pending home sales from June, but a 1.8% increase from the previous year.
- The Midwest experienced a 4% drop in pending home sales month-over-month, up 1.3% from a year ago
- Pending home sales in the Northeast saw a slight decrease of 0.6% from the previous month, down 0.6% from last year.
Yun doesn’t see the decreases in pending home sales lasting.
“The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible homebuyers in the upcoming months," he said.
Did mortgage rates show any change?
According to data from Freddie Mac, the 30-year fixed-rate mortgage averaged 6.58% as of Aug. 21*. This is unchanged compared to one week ago but up from 6.46% one year ago.
Mortgage rates cooling off would be a welcome sign to prospective homebuyers. A decrease in mortgage rates could also signal movement in the housing market as we head past the traditional warm-weather homebuying season and into the cooler fall months.
Are you ready to start the homebuying process? Take the first steps in buying your dream home by applying for a mortgage pre-approval with Guaranteed Rate Affinity! A pre-approval shows buyers and real estate agents that you’re serious and gives you an idea of how much of a mortgage you’re likely to get approved for.
* National average rates from Freddie Mac as of Aug. 21, 2025, are not advertised rates from Guaranteed Rate Affinity.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply, contact Guaranteed Rate Affinity for current rates and for more information.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate Affinity does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate Affinity. Guaranteed Rate Affinity, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.