US pending home sales May
US pending home sales
  • Prior was 0.0%
  • Index 76.5 vs 78.9 prior

US housing data has been strong lately but this is a miss in a forward-looking indicator. There are signs that rate buy-downs are pushing people towards new construction rather than existing homes. The report could also indicate a lack of inventory, as new listings are down 25% compared to last June.

The pending home sales report measures to the number of homes that have been sold but not yet closed. Essentially, a contract has been signed but the transaction has not yet been completed. The National Association of Realtors (NAR) releases a Pending Home Sales Index (PHSI) each month that measures housing contract activity. The data is based on signed real estate contracts for existing single-family homes, condos, and co-ops. This is a forward-looking indicator as it represents transactions that will be closed in the coming months