Pending sales up for the first time since March 

A slight uptick in home sale contracts in June suggests that demand is still out there even as some buyers continue to wait on the sidelines.

The National Association of Realtors reported that pending home sales were up 4.8% in June compared to May. Sales were still 2.6% lower than they were a year ago, but after two months of declines, it's a sign that things started to perk up in the latter part of the spring homebuying season as mortgage rates steadily declined and inventory grew.

"The number of pending sales in June would have been even higher, but some homebuyers are holding back anticipating lower mortgage rates later this year," said Lisa Sturtevant, chief economist at Bright MLS. 

"Buyers likely will also have more options to choose from later this fall. The market will move toward more of a balanced housing market in the second half of the year, but prospective homebuyers will still face competition."

Index optimism: NAR's Pending Home Sales Index — a forward-looking indicator of home sales based on contract signings — rose in all four regions between May and June but was down year-over-year, except in the West where sales were up 1% annually.

NAR Chief Economist Lawrence Yun said he expects inventory to continue increasing until winter, giving buyers an advantage.

"The rise in housing inventory is beginning to lead to more contract signings. Multiple offers are less intense, and buyers are in a more favorable position," Yun said.

But there's still not enough inventory to push prices down.

"Though the recent pick-up in inventory is great news for buyers, active listings remain well below pre-pandemic levels, which has kept home prices elevated and has pushed many would-be buyers out of the market," said Hannah Jones, senior economic research analyst at Realtor.com.

Where mortgage rates go in the coming months will also impact home sales. The Federal Reserve is expected to provide some guidance as it concludes its July 31 meeting.