US DATA: Pending Home Sales Reinforce Sluggish Existing Home Sales Recovery
Jul-27 17:59By: Chris Harrison
- Today’s pending home sales data were slightly stronger than expected, rising +0.3% M/M in June (cons -0.5%) after -2.5%, but still reinforced the difference in the recoveries seen in new and existing home sales since mortgage rates peaked in late 2022.
- New home sales have rebounded back to the 2019 average whereas existing home sales are still 20% lower and more than 25% lower in case of pending sales.
- As we touched on yesterday (see here), greater relative supply of new home sales has allowed prices to correct at faster pace and helped support sales.
