Here Comes Pending Home Sales...

contract pending

Pending home sales index (PHSI) for June are out at 10 a.m. ET.

Economists polled by Bloomberg are looking for pending home sales to fall 1% month-over-month, and rise 8.3% year-over-year.

This compares with a 6.7% mum rise in May, and 12.5% YoY rise. Bank of America’s Michelle Meyer expects a decline of 2% on the month. She expects some of the decline to be on accounts of a “give-back following a 6.7% surge in May.”

Economists will also be watching to see how pending home sales respond to rising mortgage rates. The 30-year rate stands at 4.31% according to Freddie Mac’s primary mortgage market survey.

Investors watch this number because it is considered a leading indicator of the housing market. The PHSI looks at all homes where a contract has been signed but the sale is not complete.

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