There was a 0.8 percent drop in sales of existing homes in June from May, the National Association of Realtors just reported. They dipped to an annual rate of 4.77 million.
According to NAR Chief Economist Lawrence Yun, there was "an unusual spike in contract cancellations in the past month."
"The underlying reason for elevated cancellations is unclear," Yun adds in a statement released by the association, "but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year."
Sales of previously owned homes, The Associated Press adds, are "on pace to finish behind last year's 4.91 million homes sold — the weakest sales in 13 years. Sales have fallen in four of the past five years."