Pending Home Sales Miss Expectations Due To Limited Inventory
- Pending Home Sales were unchanged in April.
- The National Association of Realtors highlighted affordability challenges.
- Markets showed little reaction to the report as traders remained focused on debt ceiling negotiations.
On May 25, the National Association of Realtors released the Pending Home Sales report for April. The report indicated that Pending Homes Slaes were unchanged on a month-over-month basis, compared to analyst consensus of +1%.
On a year-over-year basis, Pending Home Sales declined by 20.3%, which is not surprising as buyers reacted to higher interest rates.
NAR Chief Economist Lawrence Yun commented: “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.” He also said limited inventory was among the reasons for weak activity.
At this point, it looks that the situation in the housing market will not improve materially until interest rates fall from current levels.
While Pending Home Sales fell short of analyst expectations, markets have mostly ignored the report as traders remained focused on the U.S. debt ceiling drama.
SP500 settled near 4135 as traders waited for additional catalysts. The better-than-expected GDP report did not provide support to stocks as debt ceiling negotiations continued.
U.S. Dollar Index tested new highs above the 104 level as demand for safe-haven assets remained strong.
Treasury yields continued to move higher, which was bearish for gold markets. Currently, the price of gold is trying to settle below the $1950 level.
For a look at all of today’s economic events, check out our economic calendar.