US Pending Home Sale Up +1.6% in December

US Pending Home Sale Up +1.6% in December

US Pending Home Sale Up +1.6% in December

$DIA, $SPY, $QQQ, $VXX

More Americans signed contracts to buy homes in December. The increase possibly reflects more people scrambling to purchase homes as mortgage rates have been rising and increasing the costs of ownership.

The National Association of Realtors (NAR) said Monday that its seasonally adjusted pending home sales index rose 1.6% to 107.3, a rebound after declining in November.

Pending home sales rose in the West and South, and dipped in the Northeast and Midwest.

Mortgage rates began to rise after Donald Trump’s Presidential win in November. Average 30-year fixed rate mortgages were 4.19%  last week, after averaging a low 3.65% of all of Y 2016.

Note: Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.

In terms of completed sales of existing homes, buying activity dipped in December as the number of available homes for sale fell to their lowest level since Y 1999. The inventory squeeze has caused prices to rise and potentially led more people to sign contracts in December out concerns that the number of listings could keep dropping.

The Realtors said last week that sales of existing homes fell 2.8% last month to a seasonally adjusted annual rate of 5.49-M. For all of Y 2016, sales posted an annual gain of 3.8% to 5.45-M.

Just 1.65-M homes were listed for sale in December, a 6.3% decliner from a year ago.

Monday, the major US stock market indexes finished at: DJIA -122.65 at 19971.26, NAS Comp -47.07 at 5613.71, S&P 500 -13.79 at 2280.90

Volume: Trade was heavy on the NYSE, with 1.03-B/shares exchanged

  • Russell 2000 -0.3% YTD
  • DJIA +1.1% YTD
  • S&P 500 1.9% YTD
  • NAS Comp 4.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.34) Neutral (0.05) Bullish (0.40) Very Bullish (0.58)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.14) Neutral (-0.17) Neutral (0.23) Bullish (0.38)
HeffX-LTN Analysis  for QQQ: Overall Short Intermediate Long
Bullish (0.47) Bullish (0.47) Bullish (0.42) Very Bullish (0.53)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.29) Neutral (-0.17) Very Bearish (-0.55) Neutral (-0.15)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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