Once again, pending home sales is the tie-breaker in US housing as new home sales soared and existing home sales dipped in January.
Pending home sales fell 4.9% MoM in December and were expected to rebound 3.0% MoM in January but accelerated more, rising 5.2% MoM (and December was revised up to -4.3% MoM)
That MoM rise is the biggest jump since October 2010.
“This month’s solid activity -- the second-highest monthly figure in over two years -- is due to the good economic backdrop and exceptionally low mortgage rates,” Lawrence Yun, NAR’s chief economist, said in a statement.
“We are still lacking in inventory.”
Signings last month increased in all regions but the West. The index of pending sales jumped 8.7% in the South, the biggest region, to the highest level since March 2006.
Of course, mortgage rates have collapsed in recent days suggesting more demand...
But, will the equity market plunge cause home-buying sentiment to slump?