Pending Home Sales On Rising Slope

Up-and-down but along a rising slope is a fair description of this year's housing data. Tuesday's sharp drop in new home sales is part of the bad news for the sector but not pending sales of existing homes which hit the top end of Econoday's consensus range at a 1.1 percent monthly gain in May. Though year-on-year the index is still down 0.7 percent, the 105.4 index level is the best showing since July and points to better traction for final resales.

Differences between regions are narrow though the West is trailing, posting a second straight 1.8 percent monthly decline and a 3.1 percent yearly decline. Aside from the West the US housing sector, benefiting from still declining mortgage rates, is having a better than last year with residential investment, after five quarters of contraction, looking to contribute to second-quarter GDP growth.