Pending Home Sales Jump
Pending Home Sales Jump In June, Break 17-Month Losing Streak
After mixed home sales data (new higher and existing lower), pending home sales were expected to increase by 0.5% MoM but beat handily, rising 2.8% MoM.
As Bloomberg notes, contract signings to purchase previously owned U.S. homes rose in June by the most in three months, indicating demand may pick up with the help of lower mortgage rates and steady job growth.
“Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” NAR Chief Economist Lawrence Yun said in a statement.
“When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases.”
Pending home sales broke a 17 month losing streak, rising 1.6% YoY – the most since Feb 2017…
Contract signings increased 5.4% from the prior month in the West, the most in three months; rose for a fourth month in the Midwest; and advanced in the South and Northeast.
Pending home sales are often looked to as a leading indicator of existing-home purchases and a measure of the health of the housing market in the coming months.