Pending Home Sales Index Rises

Existing home sales have been at cycle highs but have not been able to move above, yet new gains may perhaps be underway. The pending home sales index rose a very a strong 1.6 percent in December which is just above Econoday's top estimate. Pending sales track contract signings for resales and the gain points squarely at January and February strength for final sales which are tracked in the existing home sales report..

Regional data for pending sales show the West out in front with a year-on-year gain of 5.0 percent. The Midwest trails with a 3.4 percent year-on-year decline. This is a light week for housing data though the Case-Shiller price report will be a highlight of tomorrow's calendar.

Recent History Of This Indicator:
Housing indicators for the most part have been showing strength but not the pending home sales index which tracks initial contract signings for resales and was very soft in October and November. But forecasters see a bounce for December, predicting a consensus rise of 0.6 percent that in turn would point to a bounce higher for final sales of existing homes.