Despite a big jump in existing home sales (and continued increases in new home sales), pending home sales were expected to drop 3.1% MoM in February (the latest data) after the huge 8.1% surge in January. However, in line with the others, pending home sales beat expectations, rising 0.8% MoM

Source: Bloomberg

That pushed the pending home sales index to its highest since August...

Source: Bloomberg

Signings rose in February in all regions but the West (where the most expensive homes are), while the increase was led by a 6.5% advance in the Northeast.

Of course, so much of this recent resurgence was due to a brief dip in mortgage rates - what happens next...

Source: Bloomberg

The pending home sales report is often seen as a leading indicator of existing home sales given homes typically go under contract a month or two before they’re sold.

“After nearly a year, the housing sector’s contraction is coming to an end,” Lawrence Yun, NAR’s chief economist, said in a statement.

Sadly, Mr. Yun, we think your celebration is premature.