It’s starting to look more and more like the post-tax-credit expiry collapse in the housing data was a bit of an overshoot and not necessarily the beginning of a next big leg down.
To wit the August pending home sales numbers were better than expected.
Sales of homes in the U.S. rose 4.3% in August, based on the number of contracts signed. The National Association of Realtors said its pending home sales index rose to 82.3 from 78.9 in July. Pending sales reflect contracts signed between home buyers and sellers. The closing of a sale usually takes a few months. Lawrence Yun, chief economist of NAR, said ultra-low interest rates are drawing buyers back into the market, though the housing sector is still subdued.
US stocks are still down, though the Dow is nearly back to even.