US pending home sales miss expectations in June

US pending home sales rose a lot less than expected in June, according to data from the National Association of Realtors (NAR).

The NAR’s monthly index rose 0.2% to 111.0 from 110.8 in May. Economists had been expecting a 1.4% increase.

With last month's minor improvement, the index is now at its second- highest reading over the past 12 months, but is noticeably below this year's peak level of 115.0 in April.

The NAR's chief economist, Lawrence Yun, said: “With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cooldown after a very active spring.

"Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost 6% from a year ago, and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth."