Pending Home Sales Surge

A fast break just when housing needed one appears in a 2.8 percent surge in pending sales of existing homes. Pending sales don't necessarily follow in lockstep with final sales but June's gain will definitely underpin expectations for the existing home sales report in both July and August.

Housing started the year on the rise but then trailed off, evident in the year-on-year rate in this report which is only marginally positive at 1.6 percent. Yet June's gain for this index as well as its 1.1 percent monthly showing in May are positives for the outlook, reflecting low prices and improving supply along with the strong jobs market and low mortgage rates.