Pending Home Sales Confirm Housing Market Rebound

After new- and existing-home-sales rebounded notably in August, expectations were that pending sales would complete the trifecta and sure enough it did (rising 1.3% MoM, better than the 1.0% expected jump)

Source: Bloomberg

Pending home sales rose 2.48% YoY - the biggest annual jump since April 2016...

Source: Bloomberg

All regions saw an increase in sales in August:

• Northeast up 1.4%; July fell 1.6%

• Midwest up 0.6%; July fell 2.4%

• South up 1.4%; July fell 2.4%

• West up 3.1%; July fell 3.4%

But we note that The Northeast (-1.1%) and Midwest (-1.6%) both fell year-over-year.

The question is - what happens next? As mortgage rates have rebounded higher and mortgage applications have already tumbled since this sales data...

Source: Bloomberg