Quotes from Barclays Capital:
- US pending home sales rose 1.7% m/m in Jan, modestly below our forecast (2.2%) and the consensus estimate (2.0%). Some of the miss relative to our forecast came from the upward revision to Dec data, which now show a smaller 1.5% m/m decline versus the 3.7% decline initially reported.
- Gains in Jan were fairly broad based, with the Northeast (+0.1%), South (+3.2%), and West (+2.2%) all posting gains. The Midwest, with a decline of 0.7% m/m, was the lone soft spot in the report.
- The Jan print, plus the upward revision to Dec, suggests that the larger-than-expected decline in existing home sales in Jan is likely to be at least partially reversed in the coming months. We maintain our view that housing remains in a recovery phase, but one with less upward momentum
