Wednesday, April 01, 2009

Pending Home Sales Index

by Bill McBride on 4/01/2009 09:59:00 AM

From the NAR: Gain Seen In Pending Home Sales, Housing Affordability Sets New Record

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.
This suggests a possible slight increase in existing home sales from March to April (February was the most recent report).

Note: Existing home sales are reported at the close of escrow, pending home sales are reported when contracts are signed. The Pending Home Sales index leads existing home sales by about 45 days, so the February report suggests existing home sales will increase slightly from March to April.

Note: Ignore all the affordability nonsense. That just tells you interest rates are low.