The numbers: U.S. pending-home sales climbed in May by 0.7%, according to the month-to-month index launched Monday by the National Association of Realtors.
Experts surveyed by the Wall Street Journal had actually anticipated the pending home sales index to visit 4%.
This rise damages a six-month decrease, and also comes as home mortgage rates remain to increase.
Trick details: Compared with a year earlier, transactions were down 13.6%. Regionally, the index jumped the most in Northeast, and also fell in the Midwest and West.
Broad view: The rise is not most likely to transform economic experts’ grim forecast for the housing market.
The index mirrors deals where the agreement has actually been signed for an existing-home sale, however the sale has not yet shut. Financial experts see it as a sign for the direction of existing-home sales in succeeding months.
” Despite the tiny gain in pending sales from the prior month, the real estate market is plainly undertaking a transition,” NAR Chief Economist Lawrence Yun stated. “Contract signings are down sizably from a year ago due to much greater home mortgage prices.”
What are they stating? “It’s a rather little bounce after six straight decreases, so it doesn’t change the tale that the housing market is established for a much more tough year in advance because of poor cost and also anticipated slower work development,” Sal Guatieri, senior financial expert at BMO Capital Markets, informed MarketWatch.
Market response: The Dow Jones Industrial Average and also the S&P 500 were both a little reduced in very early trading on Monday. The yield on the 10-year Treasury note climbed a little to 3.18%.