US Pending home sales: Another disappoint - Wells Fargo

According to analysts from Wells Fargo, in May, the Pending Home Sales report continue to disappoint, posting the third monthly decline in a row. 

Key Quotes: 

“Pending home sales fell well short of expectations, declining by 0.8 percent in May. The drop in purchase contracts comes on the heels of a downwardly revised April print and marks the third consecutive monthly drop for the series.”

“Housing demand is solid, as evidenced by the improving trend for purchase plans. But low inventories are apparently keeping many would-be buyers (and sellers) on the sidelines.”

“While low inventories are likely the lead culprit in undermining home sales, seasonal distortions are still at play. Pending sales surged in February on unseasonably mild weather. The seasonally adjusted numbers have been out of whack ever since.”