US pending home sales for October 2.0% versus -2.0% estimate

• Prior month +7.4%

• Pending home sales 2.0% versus -2.0% expected
• Home sales index 77.4 versus 75.8 last month
• Sales up 5.4% year on year. Highest level since March.

Regionally:

• Northeast 4.7% MoM and +7.2% YoY
• West 0.2% MoM 16.8% YoY
• Midwest 4.0% MoM and 1.8% YoY
• South 0.9% MoM and 2.5% YoY

There is more supply which could be helping the pending home sales. The number of active listings up 29% for the year. The number of Lockbox openings rose 7% in October vs last year according to SentriLock which is also a positive indicator.

NAR chief economist Lawrenc Yun said:

“Homebuying momentum is building after nearly two years of suppressed home sales. Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”

This article was written by Greg Michalowski at www.forexlive.com.