Fewer Americans signed contracts to buy homes in July, but the level remained close to a more than 6-year high. The modest monthly decline suggests higher mortgage rates have not yet sharply slowed sales. The National Association of Realtors (NAR) said Wednesday its pending home sales index fell 1.3 percent to 109.5 last month, close to May's reading of 111.3, the highest since December. The small decline suggests sales of previously owned homes should remain healthy in the coming months. There is generally a lag of one to two months between a signed contract and a completed sale. Sales jumped to an annual pace of 5.4 million in July, the highest in more than three years and a level consistent with a healthy housing market. Higher mortgage rates seemed to have a bigger impact on new-home sales, which plunged last month, raising fears that rate increases were limiting the housing recovery. However, many economists note that home prices and mortgage rates remain low by historical standards.
