Pending home sales jump 7.4% in August
Normally, I'd take this as surprisingly good news. It appears that some of the government efforts to drive mortgage rates lower, plus lower home prices in many markets, are encouraging some buyers to step up and bottom fish.
The only problem is that many of these "pending" sales won't turn into "closed" sales as long as the credit markets remain locked up. Buyers just won't be able to get the financing they need, even if they want to purchase a home. We've also seen the economy deteriorate in the past several weeks, potentially setting the stage for weaker numbers going forward.