June pending home sales declined 1.4% and fell short of estimates which were closer to a 1.0% increase. The index was still up 9.5% y/y. The number may cool the outlook for economic growth at the margin, but the trade has been more focused on Europe today. The National Association of Home Builder’s sales index has been more upbeat on activity than the pending home sales index. The graphic below displays the relationship and the recent divergence. The NAHB sales index surged 6 to 37 in July and argues for strength in pending home sales in July.
— Option Monster