Economist's Insights

April’s Pending Homes Sales Wobble, Wrap Up Weak Month for Housing

May 31, 2017

Pending home sales unexpectedly declined in April to complete a disappointing month for the U.S. housing sector. The 1.3% MoM decline in contracts signed on existing home sales was weaker than expectations for a 0.5% bounce back. On a year-over-year basis, pending sales declined the most since the summer of 2014. The trend in pending sales remains sideways (since the middle of last year) and offers little sign of any change momentum in pending sales. The story on housing continues to be a rinse and repeat; tight supply and price appreciation continue to outweigh some slight relief from the recent pullback in mortgage rates.