Pending Sales Of Existing Homes Slow

Pending sales of existing homes slowed in January, down an unexpected 2.5 percent to an index level of 106.0 in a decline offset but only in part by an 8-tenths upward revision to December to plus 0.9 percent. Econoday forecasters were expecting a much better reading, at a consensus plus 0.5 percent for January sales. Sales in the month fell in three of the four regions with only the South in the plus column. Year-on-year, pending sales are up only 1.4 percent. Today's report is yet another disappointment for a sector that, despite high employment and low mortgage rates, is getting off to a flat start for 2016.

Recent History Of This Indicator:
Boosted by gains in mortgage applications for home purchases, pending home sales are expected to climb 0.5 percent in January, in turn pointing to solid growth for final sales of existing homes. However up-and-down the sector has been, housing still appears to be a positive for the nation's economy.