U.S. August Pending Home Sales - Significant bounce, follows strength in August new home sales
Pending home sales have seen a sharp 4.0% increase in August, which hints at a bounce in existing home sales in September. We have also recently seen a strong rise in August new home sales. Lower bond yields in anticipation of Fed easing appear to be having some impact.
The NAHB homebuilders’ index remained weak in September but there have been some signs of a pick-up in recent weekly MBA house purchase indices. If the housing sector is already picking up, it could be an argument that only moderate Fed easing is necessary.
Detail shows a second straight pending home sales decline in the Northeast but gains in the other three regions, the Midwest most sharply after underperformance in July. The latest pending home sales level nationally is the highest since March.
