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Pending Home Sales Fired Up After April Slump; Rates Face Bigger Risks

Pending Home Sales Fired Up After April Slump; Rates Face Bigger Risks

Pending home sales in April unnerved a lot of people. At what should have been a high point in the spring market, they fell 4.4 percent from the previous month and the National Association of Realtors'® (NAR's) Pending Home Sales Index (PHSI) neared the 20-year old benchmark of 100. Every consensus estimate from analysts that we could find was badly off the mark. They are widely off again this month , but the industry's reaction is probably quite different. Rather than the 0.8 and 2.0 percent declines expected by analysts polled by Econoday and Trade Economics, respectively, May's PHSI soared 8.0 percent higher than in April and was up 13.1 percent from May 2020. The Index, based on contracts signed to purchase existing single-family homes, townhouses, condos, and cooperative apartments
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