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Pending home sales cools slightly in June

Posted on Wednesday, July 29, 2015 at 5:47:02 PM

Home resale activity had hit a heady pace in the months leading up to June, but cooled off a bit last month, though this is no indication that the full-steam-ahead housing recovery has lost some of that aforementioned steam. 

The National Association of Realtors' Pending Home Sales Index, a gauge based on contracts signed the month prior, dropped 1.8 percent to 110.3 in June. This slight decline came after five straight months of gains in the index. However, the dampening of home resale activity in June did little to sway the notion that the recovery of the housing market is trending in the right direction. 

"The June decline is a hiccup. It is important to bear in mind that there is still plenty of fundamental support for the housing market," Jennifer Lee, a senior economist at BMO Capital Markets in Toronto, explained to Reuters. 

The index' streak of gains may have halted in June, but that doesn't mean it was a sign of bad things to come. It was up 8.2 percent year-over-year and is the third-highest reading of 2015, according to the news outlet. Consumers will continue to seek residential financing for all sorts of homes as the sector of the economy continues to show positive signs.