- Prior was -2.7%
- Index 76.8 vs 76.5 prior
This is a decent forward-looking indicator and a nice rebound after a poor number in May. I think it's clear that there are people who want to buy homes, it's just that inventories of homes for sale are very low and mortgage rates are high.
The pending home sales report measures to the number of homes that have been sold but not yet closed. Essentially, a contract has been signed but the transaction has not yet been completed. The National Association of Realtors (NAR) releases a Pending Home Sales Index (PHSI) each month that measures housing contract activity. The data is based on signed real estate contracts for existing single-family homes, condos, and co-ops. This is a forward-looking indicator as it represents transactions that will be closed in the coming months
