The recently released Meyers Research, New Home Pending Sales Index (PSI) for May 2020, reports that pending homes sales decreased year-over-year but rose month-over-month across the U.S. The PSI is based on the number of new home sales contracts signed across the country. The New Home PSI came in at 101.6 for May, representing a 5.2% decrease from May 2019. On a month-over-month basis, new home sales rose by 16.7% from April. According to Meyers the housing market posted a substantial rebound in May that has carried on through June. Low mortgage rates, pent-up demand, more flexibility of location due to the shift to work-from-home, and an elevated savings rate helping with the down payment all fueled new home purchases.
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