Pending Home Sales Drop

More trouble is in store for the housing sector as initial contract signings for resales, as tracked by the pending home sales index, fell 0.7 percent in July. Year-on-year, this index is down 2.3 percent which compares with a 1.5 percent decline in final sales as measured by the existing home sales report.

Regions show roughly equal weakness with the West, where prices are strong and affordability low, the very weakest at a 0.9 percent decline in July and down 5.8 percent year-on-year. Today's results will lower estimates for the next existing home sales report.