Pending Home Sales Plunge, GDP Delayed, Jobs On Time
Mike (Mish) Shedlock | Jan 31, 2019 01:47AM ET
Pending home sales in December plunged despite falling mortgage rates. The GDP report, due tomorrow will be delayed.
The pending home sales index is a leading indicator of existing home sales (resales). The National Association of Realtors (NASR) developed the index.
Pending home sales are those in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale
Comments
Pending home sales fell a steep 2.2 percent in the month which points to unwelcome weakness for final sales of existing homes especially in January and also February. Final sales in December, reported last week, dropped a very sharp 6.4 percent to a 4.990 million annualized rate that was the lowest in more than three years. The pending sales index can be volatile but the direction of today's indication is unmistakable.
History
In December, existing home sales fell 6.4% to a seasonally adjusted rate of 4.99 million in December. Economists expected a 1.3% decline.
I commented Existing Home Sales Plunge 6.4%, Down 10.3% Y-O-Y, Worst Reading in Over 3 Years .
The pending index suggests more weakness, but we have to wait for the data. If accurate, expect another 2.2% decline on top of the chart shown.
The Existing-Home Sales data release for January 2019 is scheduled for Thursday, February 21, 2019.
The Jobs report due Friday, February 1, will be on schedule.
Mike "Mish" Shedlock
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