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Pending Home Sales Add More Evidence Of Weakening Residential Market

US DATA

Large miss on June pending home sales, with the worst M/M figure since April 2020 (-8.6% vs -1.0% expected, and a modest downward revision for May).

  • From the NAR: "As escalating mortgage rates and housing prices impacted potential buyers, pending sales fell in all four major regions in June 2022, with the West experiencing the largest monthly decline." (The West region M/M figure was -15.9%)
  • Given that pending home sales is a leading indicator for existing home sales (with a 1 to 2 month lead), housing market activity clearly looks to be cooling.

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