U.S. April Pending Home Sales - Resilient to fading easing hopes
Pending home sales have seen a 1.4% increase in April, slightly above expectations, a third straight rise and turning yr/yr growth positive at 3.2% for the first time since November.
The recent gains come after a fall to a record low in January, and most other housing sector trends suggest there is limited further upside scope. However after yesterday’s improved NAHB homebuilders’ survey for May it does not appear that rising mortgage rates in response to reduced Fed easing expectations are not yet having a significant adverse impact on housing demand.
Regional data shows a second straight strong rise in the Northeast but it is still the only region to be negative yr/yr. The Midwest and West saw gains after March declines while the one region to decline in April was the South, in a correction from a strong March.
