American pending home sales rebounded in October to assure that levels hit the highest in 15 years, according to data released by the National Association of Realtors. XHB is down 0.10%.
- The Pending Home Sales Index climbed 7.5% to 125.2 in October, above the 100 level equal to the level of contact activity in 2001.
- Contract signing rose at the fastest pace in the Midwest with 11.8%, followed by the South with 8.0%, the Northeast with 6.9%, and the West with 6.2%.
- NAR Chief Economist Lawrence Yun said the notable gain during the month would ensure that the existing-home sales will exceed 6 million this year.
- The market is on track to post its best performance in 15 years, driven by fast-rising rents and the anticipated increase in mortgage rates.
- Yun believes solid buying affirms the high demand, given that inventories remain markedly low.
- Yun expects home price growth to slow in the next few months and demand to cool as mortgage rates increase.