If you want it, come and get it. Pending Home Sales are going fast. Stocks are higher and Mortgage Bonds are trading near unchanged levels so far today.
Pending Home Sales, which measures signed contracts on existing homes, were down 2.6% in November. This was lower than the 0.3% drop expected, but sales are still up 16.42% year over year. The month over month decline was not due to a lack of demand, but a lack of supply. Remember that the supply of existing homes is down 22% year over year, if there were more homes on the market, there would be even more sales. Nonetheless, it is still impressive that sales are up 16.4% year over year with inventory down 22%.
Tomorrow will be a holiday-shortened session, Bonds will close at 2:00 pm ET, Stocks have a regular session. All Markets will be closed on Friday.
Mortgage Bonds have broken above their 25-day Moving Average and are now trading below the next resistance level of 103.7. Bonds are in a tight range between these two levels. If Bonds can break through this level, we have a lot of room to move higher until reaching the next resistance level.