The National Association of Realtors will release data on pending home sales during May at 10 a.m. ET.
Economists forecast that pending sales fell 1.1%, according to Bloomberg, following a 5.1% jump in April to the best level in a decade.
Pending home sales are a forward-looking indicator of the housing market, as they are based on signed contracts prior to final sales.
Here’s a preview from Bank of America Merrill Lynch:
“Pending home sales are likely to fall back slightly, declining 1.0% mum in May. This would be a payback from the prior three months of strong gains. Our forecast for a slight drop is largely to reflect the typical volatility in the data. We think it is prudent to smooth through the monthly swings to reveal a modest underlying upward trend in home sales.”