Pending Home Sales Fall

- Pending Home Sales for August fell -6.5% versus estimates of a -2.1% decline and an upwardly revised -10.7% decline in July.

BOTTOM LINE: The number of Americans signing contracts to buy previously owned homes fell in August during the peak of the credit market turmoil, Bloomberg reported. Pending home resales fell 9.5% in the South, 8.3% in the Northeast, 2.9% in the Midwest and 2.7% in the West. Fed fund futures now imply a 76% chance of another 25 basis point rate cut at the upcoming meeting. I expect pending home sales to rebound sharply next month on a meaningful improvement in the credit markets and lower mortgage rates.