Following the trend of last week's 12.3% jump in Existing Home Sales, Pending Home Sales rose 2% according to the National Association of Realtors. A Pending Home Sale is counted when a contract between the buyer and seller has been completed but the house has not closed yet.
The monthly gain from November to December was double the expectations of economists and is the fifth monthly gain out of the last six months. Both Existing and Pending Home Sales continue to show monthly gains even though there has been no tax credit for some time which shows that there is genuine demand for housing. Many buyers are finally getting "off of the fence" with the steady rise in thirty year fixed rates.