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

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.