Pending home sales still falling

Pending home sales fell a further 2.6% in June, a weaker result than expectations, which follows a 29.9% plunge in May. Over the last 12 months, pending home sales have fallen 20.1% versus a 15.6% year-over-year drop in May (based on the not seasonally adjusted data).
BOTTOM LINE: The July homebuilders' survey noted "The pause in sales following expiration of the home buyer tax credits is turning out to be longer than anticipated" and this report corroborates that sentiment. We expect that existing home sales will also fall in the months ahead but the decline should be more smooth relative to pending and new home sales given the extension of the deadline for contract closings to the end of September.

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