While closed home sales perked up in July, pending sales and mortgage application data suggests another market slowdown is on the way. Key points: Completed home sales ticked up in July, but both pending sales and mortgage applications have slowed, signaling a downshifting market. The bad news: New home purchase contracts stalled last month as mortgage rates climbed again, flatlining summer housing market momentum. Where mortgage rates go next may hinge on the upcoming jobs and inflation reports for July (due out Aug. 7 and Aug. 12, respectively). These declines indicate "that higher mortgage rates have weakened overall demand," Fratantoni added.