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Pending home sales, a forward-looking indicator based on contract signings, had increased for three straight months before hitting the wall in May. Contract signings were lower in all four major regions of the country, NAR said. "With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity," said NAR chief economist Lawrence Yun. Britain's shock decision last week to leave the European Union could alter the outlook for the US housing market in the second half of the year.