The resale market can't get going with today's 1.3 percent decline in pending sales, which is far below Econoday's low estimate, pointing to the risk of an outright downturn. Year-on-year, pending sales are down 2.1 percent which isn't auspicious news for final sales which, in last week's existing home sales report, were down 1.4 percent. Three of four regions show declines in pending sales with the Northeast coming in on top at no change.
The results of this report are especially important as they offer an advance indication at the beginning of the Spring selling season, one that, based on all the data including this report, is not off to a strong start. Lack of homes for sale and rising mortgage rates are not positives for the housing market, apparently offsetting strength in the labor market.