Signed contracts of existing homes slipped in October from November though gains remain strong from a year ago. The National Association of REALTORS® reports that Pending Home Sales fell 1.1% in October from September versus the 1% gain expected. Sales were up 20.2% from October 2019. Small losses were seen in the East, West and Midwest with an increase seen in the South. A sale is measured by a signed contract but the transaction has not closed. Lawrence Yun, NAR's chief economist said, "The housing market is still hot, but we may be starting to see rising home prices hurting affordability."
The Dow, S&P and NASDAQ stock indexes are all seeing +10% gains for the month due mainly to vaccine hopes. The Dow is battling psychological resistance at 30,000 and the threat of further lock downs in certain states is a growing concern that may limit near-term gains. The week features key labor market data from ADP on Wednesday and the Jobs Report on Friday for November.