May Pending Home Sales Will Rebound Significantly

As I already noted, pending home sales (PHS) should rebound in May reflecting normalization of transitory factors (lockdowns and lack of supply) and improving fundamentals.

In a context where mortgage rates kept declining (supporting buying activity), local/state data confirmed that pending home sales will rebound sharply in May and should even exceed expectations (+19.3%e MoM according to Bloomberg consensus).

 

 

As a matter of fact, a smaller decline on a YoY basis compared to April (-34.6% YoY) would be sufficient for PHS to rebound on a MoM basis (after seasonal adjustment). However, it’s interesting note that several areas, such as Maryland, posted a bounce on YoY basis, suggesting that a significant rebound is very likely.

 

Partager l'article

Partager sur facebook
Partager sur google
Partager sur twitter
Partager sur linkedin
Partager sur pinterest
Partager sur print
Partager sur email

Venez découvrir mon blog

Vous y trouverez des résumés de l’actualité, des sélections de graphiques, certaines de mes analyses et prévisions ainsi que des contributions externes.