Pending Home Sales Higher In July

Pending home sales jumped higher in July but from a June that is now revised sharply lower. The July index came in at 111.3, a level that is only marginally above June's initial reading of 111.0 but is 1.3 percent above the revised level of 109.9. The index hit a recent peak in April at 115.0.

Looking at the year-on-year rate, pending sales are up 1.4 percent which doesn't point to much acceleration ahead for final sales of existing homes where this rate in July slipped into the negative column for the first time in two years.

Regional data show the West out in front after a sharp rise in July, at a year-on-year plus 6.2 percent followed by the Northeast at 1.1 percent and the South at 0.4 percent. The Midwest is only the region in the negative column, though only at 1.1 percent.

Sales of existing homes aren't showing the life that sales of new home sales are showing though strength in the latter does point to strength ahead for the resale side.

Recent History Of This Indicator:
Pending home sales were weak in June and May in line with what proved to be a soft July for final sales of existing homes. But prices have been coming down and new home sales have been strong both of which point to further sales gains for existing homes. Forecasters see pending sales rising 0.6 percent in the month following June's 0.2 percent gain and May's steep 3.7 percent decline.