Pending home sales reviewed - Nomura

Analysts at Nomura offered the Pending home sales reviewed as follows:

Key Quotes:

"Pending home sales index fell 2.5% m-o-m in November (Consensus: +0.5% m-o-m), after a 0.1% increase in October."

"The slowdown was broadbased across regions besides the Northeast. In addition to insufficient inventory of homes, the post-election surge in mortgage rates may have contributed to the weakerthan-expected reading of pending home sales, which capture the volume of sales contracts received on previously owned homes."

"This reading may portend some drag to existing home sales in the coming month, as pending home sales tend to lead existing home sales."