Market Update: Rate Fall; Pending Home Sales, Case-Shiller Home Price Index, and Construction Spending Coming Up This Week |

Abstract

On Monday, the pending home sales index will be released, followed by the Case-Shiller home price index on Tuesday and the construction spending report on Friday. The pending home sales index tracks changes in the number of homes that are under contract but not yet closed. In April, pending home sales slipped 3.9% month-over-month to an index level of 99.3. The S&P Case-Shiller home price index tracks changes in the value of homes involved in two or more sales transactions across 20 major metropolitan areas throughout the country. Despite the first Federal Reserve rate hike in March, home price appreciation still accelerated at a faster pace that same month. Overall, home prices jumped 2.4% month-over-month and 21.2% year-over-year according to the 20-city Case-Shiller home price index. Rate increases will likely impact the residential construction sector's spending plans shortly as more existing homes should start coming to the market with weakened demand.