Pending Home Sales Increased 1.1% In September

Vladimir Zernov
Published: Oct 26, 2023, 14:19 GMT+00:00

The report exceeded analyst expectations, providing additional support to U.S. dollar.

Pending Home Sales

In this article:

Key Insights

  • Pending Home Sales grew by 1.1% month-over-month in September. 
  • Pending Home Sales increased despite rising interest rates, which is bullish for U.S. dollar. 
  • SP500 remains under pressure as the strong pullback continues, while gold traders are waiting for news from the Middle East. 

On October 26, the National Association of Realtors released Pending Home Sales report for September. The report indicated that Pending Home Sales increased by 1.1% month-over-month, compared to analyst consensus of -1.8%.

On a year-over-year basis, Pending Home Sales declined by 11%, while analysts expected that they would decrease by 16%.

The National Association of Realtors commented: “Despite the slight gain, pending contracts remain at historically low levels due to the highest mortgage rates in 20 years. Furthermore, inventory remains tight, which hinders sales but keeps home prices elevated.”

The National Association of Realtors expects that Pending Home Sales will decrease by 17.5% in 2023 and grow by 13.5% in 2024.

U.S. Dollar Index moved higher after the release of the better-than-expected report. The increase in Pending Home Sales is bullish for the U.S. dollar as it shows that home sales can increase despite rising interest rates.

Gold remains stuck near the $1975 level as traders remain focused on the developments in the Middle East. Demand for safe-haven assets remains strong, which provides support to gold markets.

SP500 pulled back towards the 4160 level as traders reacted to Pending Home Sales data. The pullback continues, and traders remain cautious ahead of the Fed decision, which will be released next week.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

Did you find this article useful?