US pending home sales rose modestly in July

US pending home sales reversed course in July. Sales picked up 0.5% in the month (consensus +1.5%), or 7.4% above a year ago.  As these, by definition, are signed but not closed contracts, this points to another gain in August existing home sales, which are due out September 21st, although there may be some influence by the 1.7% drop in contracts signed in June. 

On a regional basis, the big improvement was in the North-east (+3.8%) followed by the South (+0.7%). The Midwest was flat while the West was down 1.4%. Again, as has been the case for a few years, the lack of (affordable) inventory is still a problem. If one is making a huge purchase such as a house, having some choice, some selection, is needed. According to the National Association of Realtors, "available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust." So the (main) issue is more supply than demand.