April Pending Home Sales, a measure of contract signings and thus a
precursor to the existing home sales data, rose 6.7% m/o/m, much better
than expectations of a gain of .5% and follows a 3.2% m/o/m rise in
March and a 2% gain in Feb. The gain was led by a 32.6% gain in the
Northeast followed by a 9.8% rise in the Midwest, the two areas of the
country that has lagged the South and West which were little changed.
Y/o/Y, pending sales are now up 3.3%. According to Bankrate.com, the
average 30 yr mortgage rate in April was 4.95% and as of last night it
was at 5.32% so the data in the next few months will tell us how
sensitive the market is to higher mortgage rates. The NAR chief
economist said, “housing affordability conditions have been at historic
highs, but now the $8000 1st time buyer tax credit is beginning to
impact the market.” “1st time buyers must finalize their purchase by Nov
30 to get the credit.”


Although the information contained herein has been obtained from sources
Miller Tabak + Co., LLC believes to be reliable, its accuracy and
completeness cannot be guaranteed. This report is for informational
purposes only and under no circumstances is it to be construed as an
offer to sell, or a solicitation to buy, any security. At various times
we may have positions in and effect transactions in securities referred
to herein. Any recommendation contained in this report may not be
appropriate for all investors. Trading options is not suitable for all
investors and involves risk of loss. Although the information contained
in the subject report (not including disclosures contained herein) has
been obtained from sources we believe to be reliable, the accuracy and
completeness of such information and the opinions expressed herein
cannot be guaranteed. An options disclosure document may be obtained
from Mr. Jay Stenberg, Miller Tabak + Co., LLC., 331 Madison Avenue, New
York, NY 10017. Additional information is available upon request.


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Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Pending Home Sales”

  1. peachin says:

    Funny…what you read and what you see…but then where we’re standing can have a impact (prejudice) on what we are looking at – HAVING SAID THAT….Hope is a drug and reality is in the eyes of the beholder – my eyes show from where I’m standing:

    “Boise Idaho population about 225,000. Capital of Idaho. College town: 10% of total population is represented by Students and Faculty. Largest Employer: Micron Technology 10,000.
    Boise is a well known entry to the surrounding Mountain Area in Fishing, Rafting, etc. Hunting, skiing, and other Mountain Recreation sports – winter and summer.
    Real Estate – The current dilemma: At June 1st 2009, There are a record number of unsold homes and previously owned homes for sale. Rental rates are sinking 30% – as a confluence of ordinary rentals and Homes for sale/ turned into rentals are sinking the market. There appears to be no recovery in Real Estate “for sale” and now “for rent” in sight.*”

    *people are moving out of houses they can’t afford – failing to sell the house, they are trying to rent the house while for sale – so the rent will pay the mortgage, insurance and taxes – which of course the rent will not do. Then they are renting something cheaper…so they are paying rent on where they moved, plus all or some of the costs of the house they cannot Afford, Sell or Rent.
    ….I guess I would call this….Getting in Deeper

    What do you see from where you are standing?

  2. peachin says:

    Yes, Boise, Idaho is not a normal anywhere – but …”The NAR chief economist said……” We’ve heard from him before – and I would “short” any statement made by the NAR – and I have…and so far the money is in the “short!”