Highlights
Closings on existing homes fell back in June (data released last week) and contract signings in the month point to soft closings ahead for July and August. The index for pending sales of existing homes fell 1.4 percent in June with declines in 3 of 4 sectors and most pronounced in the Northeast, a region that was hit by bad weather and which showed record weakness in June for new home sales (data released yesterday).

Lack of supply appears to be an increasing negative in the housing sector. The National Association of Realtors, which compiles the pending sales report, blames inventory shortages for today's weakness. But shortage of inventory, and hopefully with it higher home prices, should pull more existing homes into the market and will encourage builders in the new home market.

Data out of the housing sector have been mixed with hopeful signs again and again running into disappointment. Yet attention right now isn't on the sector but on central bank stimulus centered today in Europe. Nevertheless this report is a reminder that the housing sector, edging off a record bottom, has yet to gain traction.

Market Consensus before announcement
The pending home sales index in May bounced back a sharp 5.9 percent, following a drop of 5.5 percent in April and a gain of 3.8 percent in March. On a year-ago basis, pending home sales were up 13.3 percent in May.

2012 Release Schedule

Released On: 1/25 2/27 3/26 4/26 5/30 6/27 7/26 8/29 9/27 10/25 11/29 12/28 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov