Pending Home Sales fell 7.1% from July to August, with sales also 18.7% below the level seen a year earlier. This data measures signed contracts on existing homes, making it a forward-looking indicator for closings as measured by Existing Home Sales. August’s level of signed contracts suggests that closings in September will likely come in at an annualized pace under 4 million.

What’s the bottom line? Some would-be homebuyers have pressed pause on their purchase due to high rates and low inventory. Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), explained, "It's clear that increased housing inventory and better interest rates are essential to revive the housing market.”