Pending Home Sales Inch Higher in June

Mark Vitner Wells Fargo

The Pending Home Sales Index (PHSI) rose a modest 0.2 percent in June to 111.0, marking the second highest reading over the past year. Sales contracts rose in the Northeast and Midwest but fell in the West and South.

Slight Pick Up in Pending Sales

Following huge back-to-back swings, pending home sales rose a slight 0.2 percent in June to a level of 111.0. While the month-to-month numbers can be volatile, the pending home sales index is up 1.0 percent on a year-over-year basis.
Pending home sales, which represent contract signings, typically lead existing sales by two months. The strengthening trend in the PHSI suggests further gains in existing sales.

Sales in Northeast Lead Gains

On a regional basis, the Northeast reported the largest gain, up 3.2 percent, and the Midwest also posted a slight pickup. These increases were largely offset by declines in the West and South, which fell 0.7 percent and 1.3 percent in June, respectively.
The West, which accounts for 22 percent of existing sales, is now 1.8 percent lower than a year ago. The drop is likely due to low inventories in growing markets and affordability constraints.

Download the full report

Author

Mark Vitner

Wells Fargo

Mark Vitner is a managing director and senior economist at Wells Fargo, responsible for tracking U.S. and regional economic trends.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.