Release Explanation: The change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction Important since the housing market is included in most economic forecasts. Retail Sales, CPI, and PCE in the US. A happy householder will usually lead to a strong economic outlook. A miss here, either way, and the Markets gets to see the real confidence of the US consumer. There is a very strong impact on the sentiment towards the US Dollar from this report.
Trade Desk Thoughts: U.S. pending home sales rose by a 2.1% seasonally adjusted annual rate in February, the National Association of Realtors said today, as lower home prices and borrowing costs helped stimulate demand. The February reading was just 1.4% lower than the same month a year earlier.
Three of four regions saw an increase in pending sales, today’s report showed. Pending resales jumped 14.5% in the Midwest, gained 10.6% in the Northeast and rose 4.4% in the South. The West registered a 13.5% drop.
The interest rate on a 30-year fixed mortgage loan fell below 5% in February and has declined further since, reaching 4.61% last week, according to the Mortgage Bankers Association. However, foreclosures surged 29.9% in February from a year earlier, according to RealtyTrac.
Forex Technical Reaction: Stocks rose after the ISM and home sales reports and the dollar weakened against the euro, pound and aussie as it gained on the yen.