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Pending home sales spike amid rising inventory, moderating prices

Watch Powell and Yellen speak live to Senate panel on Covid relief efforts

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Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell speak Tuesday to the Senate Committee on Banking, Housing and Urban Affairs on efforts their respective institutions have taken to combat the pandemic's impact on the economy.

In prepared remarks for the congressionally mandated testimony, Powell noted the importance of the joint aid, saying the Fed's lending programs specifically "have served as a backstop to key credit markets and helped to restore the flow of credit from private lenders through normal channels."

Separately, Yellen said she is "optimistic about the medium-term trajectory of our economy," though she, like Powell, noted that the Covid delta variant has slowed the recovery.

Read more:
Fed Chair Powell to warn Congress that inflation pressures could last longer than expected
Fed officials say they see a pullback in their economic support even with inflation cooling
Yellen urges Congress to raise debt limit, warns Pelosi about extraordinary measures running out soon

Martin Lewis reveals the two items he is always willing to pay MORE for

Martin Lewis reveals the two things he pays more money for

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Martin Lewis took to Twitter to ask his fans what they are willing to pay more for because “costlier turns out to be better”. The Money Saving Expert said his high-end habits include toilet paper and branded cola. Speaking to BBC Radio 5 Live, Mr Lewis said: “What do you willing pay more for because costlier turns out to be better?

“The opposite of the normal money-saving philosophy on here. What are your high-end habits?

“I should start by declaring some of my own, loo roll.

“I don’t want that scratchy paper stuff, I’m willing to pay more for something soft on my buttock cheeks and cola.

“When you go for the really cheap stuff, it really doesn’t taste the same.

“If I’m going to go for cola I want one of the main brand varieties that are going on out there.

“Many people are similar to those two.”

More to follow…

U.S. Durable Goods Orders Jump 1.8% In August, Much More Than Expected

New orders for U.S. manufactured durable goods increased by much more than expected in the month of August, according to a report released the Commerce Department on Monday.

The report said durable goods orders jumped by 1.8 percent in August after rising by a revised 0.5 percent in July.

Economists had expected durable goods orders to increase by 0.6 percent compared to the 0.1 percent dip that had been reported for the previous month.

The bigger than expected increase in durable goods orders was largely due to a spike in orders for transportation equipment, which shot up by 5.5 percent in August after dipping by 0.4 percent in July.

Orders for non-defense aircraft and parts led the way higher, soaring by 77.9 percent in August after plunging by 36.3 percent in July.

Excluding the rebound in orders for transportation equipment, durable goods orders edged up by 0.2 percent in August after climbing by 0.8 percent in July.

Notable increases in orders for fabricated metal products, computers and electronic products and electrical equipment, appliances and components were partly offset by a drop in orders for machinery.

The report said new orders for non-defense capital goods excluding aircraft, a closely watched indicator of business spending, climbed by 0.5 percent in August after rising by 0.3 percent in July.

LUKOIL To Acquire 25% Interest In SWAP Exploration Project From Bp – Quick Facts

PJSC LUKOIL (LUKOY.PK), on Tuesday, signed an agreement to acquire a 25% participating interest in the Shallow Water Absheron Peninsula exploration project from bp (BP.L,BP_UN.TO,BP). Bp will remain operator of the project, holding a 25% interest. SOCAR, the State Oil Company of the Azerbaijan Republic, will hold the remaining 50% share.

The SWAP project area is located in the shallow waters south of the Absheron Peninsula in the Azerbaijan sector of the Caspian Sea. The first exploration well in the North Khali prospective area was spudded in August 2021.

Pending home sales spike amid rising inventory, moderating prices

Will rising interest rates cool housing market?

Macro Trends Advisors founding partner Mitch Roschelle provides insight into the housing market. 

Pending home sales snapped back in August, following two months of declines, as the housing market showed signs of regaining its footing.

The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, rose 8.1% last month to 119.5, according to the National Association of Realtors. A score of 100 is equivalent to the level of contract activity in 2001. 

Analysts surveyed by Refinitiv were expecting pending home sales to rise 1.4% after falling a downwardly revised 2% in July. 

Contracts signed were down 8.3% year over year.

"Rising inventory and moderating price conditions are bringing buyers back to the market," said Lawrence Yun, NAR’s chief economist. "Affordability, however, remains challenging as home price gains are roughly three times wage growth."

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Signings rose across all regions with the Midwest seeing the largest increase, climbing 10.4% last month. Transactions jumped 8.6% in the South, 7.2% in the West and 4.6% in the Northeast.