U.S. Pending Home Sales (June)

U.S. pending home sales unexpectedly fell in June. The 1.8% drop was the first setback after five straight monthly gains and hints at a cooler existing home sales result for July. And note that new mortgage applications fell for the first time in five months in July. But for June, at least, fewer contracts were signed in the South and the Midwest while signed contracts rose in the North East and the West. So it wasn't exactly weak from sea to shining sea. And from a year ago, the pending home sales index is up an impressive 11.1%.

All in, given the index level, the June decline is a hiccup. Stepping back, it is important to bear in mind that there is still plenty of fundamental support for the housing market.  Rates are still low even, if the Fed inches off the sidelines in September. Job growth is still strong, and prices are flattening out a bit, which is good for first-time homebuyers.  They just need more confidence clearly, and more options from which to buy, says BMO Economics.