Contracts to buy U.S. previously owned homes fell more than expected in June as rising mortgage rates and higher house prices continued to reduce affordability for entry-level and first-time buyers, Reuters reported. The National Association of Realtors (NAR) said yesterday that its Pending Home Sales Index, based on signed contracts, tumbled 8.6% to 91.0 last month. Contracts declined in all four regions. The contract rate on a 30-year fixed-rate mortgage is averaging 5.54%, according to data from mortgage finance agency Freddie Mac. The rate has risen more than 200 basis points since January as inflation soared and the Federal Reserve aggressively tightened monetary policy.
