|This email was sent to you by:|
Tonya W. Kenon |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
ECON: Pending Home Sales Fall More than Expected
Posted to: Micro News
Wednesday, August 28, 2013 10:06 AM
- Pending Sales down 1.3 pct vs -0.5 pct forecast
- Market Reaction: None. If anything, the bigger surprise here is that sales didn't decline even more. Markets don't tend to react much to PHS data anyway, but this is close enough to consensus in light of the much MUCH bigger miss in the Census Bureau's version of the data.
Pending home sales were down in July, with higher mortgage interest rates slowing the market, according to the National Association of Realtors.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 1.3 percent to 109.5 in July from 110.9 in June, but is 6.7 percent above July 2012 when it was 102.6; the data reflect contracts but not closings. Pending sales have stayed above year-ago levels for the past 27 months.
Lawrence Yun, NAR chief economist, said there is an uneven pattern around the country. “The modest decline in sales is not yet concerning, and contract activity remains elevated, with the South and Midwest showing no measurable slowdown. However, higher mortgage interest rates and rising home prices are impacting monthly contract activity in the high-cost regions of the Northeast and the West,” he said. “More homes clearly need to built in the West to relieve price pressure, or the region could soon face pronounced affordability problems.”
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.