U.S. pending home sales fall sequentially in July, existing home sales likely to subdue in near future

Pending home sales in the U.S. dropped on a sequential basis in July. On a month-on-month basis, the pending home sales fell 0.8 percent sequentially, as opposite to the consensus expectations of a modest rise of 0.3 percent. Meanwhile, the print for the month of June was downwardly revised by two-tenths to 1.3 percent.

Pending home sales data have stayed weak since March 2017. According to a Barclays research report, some of this weakness is likely to be witnessed in existing home sales in the near future. The existing home sales is a series that usually lags pending home sales by one-two months.

Region wise, sales dropped in all the regions except the West that recorded growth of 0.6 percent sequentially. Overall, while the sequential momentum is pending home sales has been weaker than expected in recent months, sales at these levels are viewed as consistent with the outlook for a modest rebound in the housing sector in 2017, added Barclays.

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