• 3 hours 3 Oil Stocks Ready To Weather The Geopolitical Storm
  • 21 hours Gold Miners Eye Big Third Quarter Profits
  • 1 day The U.S. Doubles Down On Domestic Lithium Production
  • 2 days Reddit Trader Scores 14,000% Returns On Rogue Trade
  • 3 days The Tangled Web Stretching From Turkey To DC
  • 3 days The U.S. Dollar Eyes Greater Upside
  • 3 days More And More Americans Believe A Recession Is Looming
  • 3 days Is The Pot Stock Boom Over Already?
  • 4 days How The California Utility Crisis Could Have Been Avoided
  • 4 days The Ugly Truth About Investing In Private Equity Deals
  • 5 days The World Is Facing A $1 Trillion Food Waste Crisis
  • 5 days Is It Time To Buy The Dip In Gold?
  • 5 days The History Of Oil Markets
  • 6 days Three Stocks To Watch Ahead Of Earnings Season
  • 6 days Markets Flat As Bulls And Bears Battle It Out
  • 6 days The Mining Industry Still Has a Human Rights Problem
  • 7 days 5 Billionaires Booted From Their Own Companies
  • 7 days Can Toyota's Hydrogen Car Take On Tesla?
  • 8 days Why Universal Basic Income Won't Work
  • 9 days Is This The Real Golden State?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Pending Home Sales Sink 3.7%, Last Month Revised Way Lower, GDP Will Follow

Pending home sales dove 3.7%, well below the Bloomberg Econoday consensus estimate of -1%, and even below the bottom estimate of -2.4%

The bad details continue, as last month's huge rise of 5.1% was lowered to 3.9%.

Highlights

Existing home sales have been trending higher but today's pending home sales index, which tracks contract signings, may be pointing to slowing for the early part of the summer. The index fell a steep 3.7 percent in the May report to nearly reverse a downward revised 3.9 percent jump in April. Year-on-year, the pending sales index is down 0.2 percent which hints at moderation for the 4.5 percent rate of final sales. Details data show monthly declines across all four regions with year-on-year rates all flat near zero. Housing data have been up and down this year but behind the noise have been deceptively solid rates of growth, among the strongest rates of the nation's slow-growth economy.


Pending Home Sales

Pending Home Sales


GDP Will Follow

Does anyone see the trend Bloomberg mentions? I don't.

Since pending sales are a leading indicator of reported sales as well as household maintenance like painting, furniture, carpeting, etc. Behind the noise, this is going to impact GDP, perhaps significantly.

 

Back to homepage

Leave a comment

Leave a comment