NAR Forecast: Home Sales to Stay in Narrow Range

The level of home sales is expected to show little movement in the months ahead, NAR projects. The association's pending home sales index for July fell 3.2 percent to 86.5 from an upwardly revised reading of 89.4 in June. "Pending home sales are oscillating month-to-month, with the long-term trend essentially flat," says NAR Chief Economist Lawrence Yun. "Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings."