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The National Association of Realtors will release its pending home sales index at 10 a.m. EST on Tuesday. February’s report indicated an 11-month high in home sales.
New single-family homes sales were at a seasonally adjusted annual rate of 667,000, which is around 4.9% higher month-over-month and 0.6% higher annually, according to February’s report.
Tian Liu, Chief Economist at Genworth Mortgage Insurance, noted the strong job market and its impact on housing in the past few months and even years.
“Falling interest rates since late December 2018 have helped to stabilize housing demand, especially in the single-family housing market,” Liu said. “The tight labor market has created the fastest wage growth in almost 10 years, making it more attractive for workers to change jobs and boost housing demand associated with increased relocation rates.”
Danielle Hale, realtor.com’s Chief Economist, stated that March’s data indicated a stronger market.
“February pending home sales data showed weakness after a pick-up in January contract signings, but February new home sales data shows a stronger read of 667,000 new home sales, up 4.9 percent from January and also slightly above last year’s sales pace (0.6 percent),” Hale said. “This trend supports the fact that lower mortgage rates have started to entice buyers this spring and foreshadows a potential strengthening of existing home sales in the months to come. Looking forward, orders should also help bolster builder confidence and boost new construction. A slight moderation in the median price due to an increase in the share of sales in the $200,000-$300,000 category is also a good sign.”
Here’s what else is happening in The Week Ahead
- Conference Board Consumer Confidence Index, Tuesday, 10 a.m. EST
- Senate Banking Committee Hearing, Tuesday, 10 a.m. EST
- Fannie Mae First Quarter 2019 Financial Results, Wednesday 8 a.m. ST
- Census Bureau Construction Spending Report, Wednesday, 10 a.m. EST
- Jerome Powell, FOMC press conference, Wednesday, 2:30 p.m. EST
