Pending home sales fell 0.5% in February, continuing to hover around a two-year high, the National Association of Realtors said today. The data, released at 10 a.m., is considered somewhat of a leading indicator, because it tracks contracts and not final sales. It offers more evidence that the housing market could be on the upswing, according to an NAR Chief Economist Lawrence Yun.
ÂIf activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, thatÂs what weÂre expecting with sales rising 7 to 10 percent in 2012.Â
Homebuilders are actually dipping this morning — new home sales data has been less optimistic of late, with data released last week showing that new home sales fell in February. But the overall market is liking the housing news, as well as comments from Ben Bernanke indicating that the Fed isn’t likely to tighten monetary policy in response to an improving economy.
The Dow was recently up 130 points at 13,210, and the S&P 500 was also up about 1%. Stocks advanced across industries, with big industrial stocks and equipment-makers posting solid gains. Deere & Company (DE) rose 2.4%.
