At 10 a.m. ET, the National Association of Realtors will publish data on pending home sales during July.
Economists forecast that pending sales, which measure contract activity, rose 0.7% month-on-month, according to Bloomberg. Compared to the prior year, they forecast an increase by 2.2%, not seasonally adjusted.
Last month’s report showed that prospective buyers were limited by the scarce number of homes at affordable prices.
Mortgage demand peaked in June, and the uptick before then signals a strong pending-home sales print, according to Pantheon Macroeconomics’ Ian Shepherdson. That’s because mortgage applications lead pending sales, as prospective buyers shop finalise paperwork and house hunt.
“Unless the volume of applications picks up again very soon, we’ll have to expect a softening in home sales towards the year-end,” Shepherdson said in a preview on Wednesday.