US May pending home sales +0.7% vs -3.7% expected

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pending home sales index

  • Prior was -3.9%
  • Year-over-year -12.0% vs -11.5% prior
  • Index 99.9 vs 99.3 prior
  • First rise in six months

This is a lagging indicator but it was notably strong. Last week, US new home sales were also strong and home builders had a good week. There is an extreme amount of bearish commentary around US housing that I don’t think is justified.

“Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,” said NAR Chief Economist Lawrence Yun. “Contract signings are down sizably from a year ago because of much higher mortgage rates.”

He added that demand still far outweighs supply.

/ eur 

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