US Pending Home Sales: A broad-based rebound in June - Wells Fargo

Analysts from Wells Fargo, point out that following a slight upwardly revised May reading, pending home sales climbed 1.5% in June. They warn that inventory remains depressed, especially in lower priced homes typically sought by first-time buyers.

Key Quotes: 

“Pending home sales surpassed expectations, growing 1.5 percent in June to 110.2. The rebound is certainly welcome, following several months of disappointing results, which had lowered expectations going into the report.”

“Interest in buying a home is clearly increasing. Unfortunately, low inventories are keeping many potential buyers and sellers on the sidelines, as many would-be trade-up buyers are reluctant to put their home up for sale until they find another home.”

“Mortgage applications to purchase a home inched higher in July while rates moved down. The trend in purchase applications shows more consistent improvement than pending sales.”