US pending home sales steady in July

The National Association of Realtors said Thursday that its US pending homes sales index held essentially steady in July, evidence of continuing strength in the country's real-estate market.

NAR's pending home sales index edged up to 110.9 from 110.4 in June, and held on to a 7.4 percent gain year over year.

The strongest region remained the Northeast, while pending sales were lower by 1.4 percent for the month in the West.

The data "bodes well for existing-sales to maintain their recent elevated pace to close out the summer," said NAR economist Lawrence Yun.

But he said tight supplies were limiting the market.

"While demand and sales continue to be stronger than earlier this year, realtors have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust."

Yun noted however that the recent turbulence in stock markets, and the Federal Reserve's cautious stance on raising interest rates "could stabilize long-term mortgage rates and preserve affordability for buyers."