U.S. May Pending Home Sales - Fourth straight gain from January's record low
Pending home sales have seen a 3.8% increase in May, well above expectations and a fourth straight rise, though still not fully reversing the declines of December and January that took the series to a record low.
Still , the highest pending home sales level since November suggests upside scope in June existing home sales. Overall housing indicators are mixed, with June’s NAHB homebuilders’ index having slipped back after a May improvement. MBA house purchase indices have shown little change in recent weeks, but like pending home sales, are off recent lows.
Detail for pending home sales shows strong gains in the Northeast and Midwest but only modest gains in the South and West, both on a month/month and yr/yr basis. Overall yr/yr growth at 4.8% is the strongest since November 2023. Today’s Fed meeting will give clues as to whether the recent improvement can be sustained.
