Pending Home Sales Rise First Time in 9 Months, Down 7.9% From Year Ago

The Wall Street Journal reports Pending Home Sales Up 3.4% in March, the first rise in nine months.

Facts and Figures

• Pending sales up 3.4% from February
• Pending sales down 7.9% from year ago
• Index 2.6% Below 2001 Level
• Actual new home sales down 14.5%

Wishful Thinking

In the wishful thinking department, Gennadiy Goldberg, U.S. strategist at TD Securities stated "The stronger pending home-sales report hints at resurgence in housing-market momentum during the typically busier spring buying season."

Don't count on it. Home prices are up, and so are mortgage rates. Thirty year mortgages are about a full point higher from a year ago. The recovery, if that's what you want to call it, was driven by all-cash sales.

Investor demand has waned at these prices. There is just not much left of the recovery, if anything at all.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com