Economist's Insights

Pending Home Sales Fall Short in May

Jun 28, 2017

Positive momentum from last week’s new and existing home sales reports failed to carry over into yesterday’s pending sales data. Pending sales of existing single family homes fell unexpectedly in May and a negative revision to April’s result further widened the divide between the leading indicator for sales and actual sales activity. The 0.8% drop last month (exp. +1.0%) and a negative 0.4% revision (to -1.7%) for April bode poorly for actual existing sales in coming months. Contract signings were weaker in three of the four regions while the level of pending transactions in the Midwest was unchanged.