Pending Sales Post a Surprising Surge; Rates Catch a Break

Pending Sales Post a Surprising Surge; Rates Catch a Break

Pending home sales rebounded in August after falling in both June and July. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), based on contracts signed for the purchase of existing homes, rose 8.1 percent from the July level. This put the PHSI at 119.5, still down 8.3 percent from its 130.3 reading in August 2020. The surge was not one analysts had expected. Those polled by Econoday expected only an 0.9 percent improvement. Trading Economic's consensus was a 1.4 percent rise. "Rising inventory and moderating price conditions are bringing buyers back to the market," said Lawrence Yun, NAR's chief economist. "Affordability, however, remains challenging as home price gains are roughly three times wage growth." He added that such an imbalance in the market