Pending home sales in May saw an encouraging 3.8% m/o/m jump in the key spring selling season, well above the estimate of up .9% and only partly offset by a downward revision of 110 bps to April which saw a .3% rise.
The NAR said, ““A late spring buyer rush—even with mortgage rates not budging—is an indication of pent-up housing demand and consumers’ acceptance of above-6% mortgage rates as the new normal. The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings. More supply is needed to help moderate home price growth.”
With the perspective that the pace of existing home sales is still rather soft, see the chart below, it was nice to see a lift even without any help from mortgage rates. We of course now watch for sustainability in the months and quarters to come.
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