The near two months of mortgage rate increases finally caught up to the housing market in June, as pending home sales dipped slightly.?The Pending Home Sales Index dropped 0.4 percent to 110.9 from 111.3?the previous month, according to the National Association of Realtors. When compared to a year ago, the PHSI was up 10.9 percent.?Lawrence Yun, NAR chief economist, said rising mortgage rates and the lack of inventory impacted sales levels.?”Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June,” he said. “The persistent lack of inventory also is contributing to lower contract signings.”With the Midwest experiencing a 1 percent drop in pending sales, the Houston real estate market was likely impacted. The West was the only region with growth in June, posting a 3.3 percent improvement.?However, July could prove to be a different story, with mortgage rates falling. Freddie Mac reported fixed rates dropped for the second consecutive week in the seven-day period ending July 25.?Real Estate News brought to you by 2M Realty, a true expert in the online real estate market.