Published: 2024-08-29T14:11:33.000Z
U.S. July Pending Home Sales see renewed weakness
Senior Economist , North America
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July pending home sales with a 5.5% decline have unexpectedly more than fully reversed a 4.8% June increase which suggests further near term weakness in in store for existing home sales, even if Fed easing in September is likely to support the market.
The pending home sales decline was broad based with all four regions down, though steepest in the Midwest, where weather was exceptionally hot, and the South, which was impacted by Hurricane Beryl.
Pending home sales are designed to predict existing home sales where the relationship is reasonable, if not very close on a month to month basis recently. Existing home sales saw a modest upward correction in July. July new home sales saw a sharper rise of 10.6%, which will be difficult to sustain.
