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Wednesday, August 28, 2013

NAR: Pending Home Sales index declined 1.3% in July

by Calculated Risk on 8/28/2013 10:00:00 AM

From the NAR: July Pending Home Sales Slip

The Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 1.3 percent to 109.5 in July from 110.9 in June, but is 6.7 percent above July 2012 when it was 102.6; the data reflect contracts but not closings. Pending sales have stayed above year-ago levels for the past 27 months.
...
The PHSI in the Northeast fell 6.5 percent to 81.5 in July but is 3.3 percent higher than a year ago. In the Midwest the index slipped 1.0 percent to 113.2 in July but is 14.5 percent above July 2012. Pending home sales in the South rose 2.6 percent to an index of 121.5 in July and are 7.7 percent higher than a year ago. The index in the West fell 4.9 percent in July to 108.6, and is 0.4 percent below July 2012.
Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in August and September.

Note: It appears some buyers pushed to close in July because of rising mortgage rates (People who signed contracts in May probably locked in mortgage rates, and they wanted to close before the lock expired).  So I expect closed sales in August to decline more than the pending home sales index would indicate.