The number of contracts to buy used homes in the U.S. fell to a record low in July as higher prices and borrowing costs priced potential buyers out of the market.

The National Association of Realtors said Thursday that its pending home sales index, based on signed contracts, fell 5.5 percent to 70.2 last month, the lowest reading since the series began in 2001.

Home sales fell in all four regions last month.

Economists polled by Reuters had forecast a 0.4 percent increase in contracts that become sales after one to two months.

In July, home sales fell 8.5% compared to the same period last year.

“The positive impact of job growth and higher inventories could not overcome affordability issues and the wait-and-see attitude associated with the upcoming U.S. presidential election,” said Lawrence Yun, NAR chief economist.

Sales activity is likely to remain subdued.

A Conference Board survey on Tuesday found that the share of consumers planning to buy a home in the next six months in August was the lowest since early 2013.

Real estate prices remain high, although the pace of price increases has slowed.

The Federal Housing Finance Agency reported Tuesday that home prices rose 5.1 percent in June from the same period last year, the smallest increase in nearly a year after a 5.9 percent gain in May.