US: Consumer fundamentals remain strong for the housing market - Nomura

Analysts at Nomura note that the US pending home sales increased 1.5% m-o-m in June, following a 0.7% decline in May.

Key Quotes

“June marked the first increase in pending home sales in four months, but the uptick could be short-lived as supply constraints continue to throttle the housing market. However, a slight boost in pending home sales (contracts signings) suggest a possible rebound in existing home sales (contracts closing) in the following month. Existing home sales fell 1.8% in June as supply constraints continue. Overall, consumer fundamentals remain strong for the housing market, but low supply has remained as an ongoing challenge.”