Here Comes Pending Home Sales...

Economists polled by Bloomberg are looking for pending home sales to fall 1% month-over-month and rise 6.3% year-over-year.

This compares with a 1.3% MoM fall in July, and an 8.6% YoY rise.

Economists have been watching for the impact of higher mortgage rates on pending home sales activity and other housing data.

The 30-year mortgage rate is at two-year highs of 4.50% in the week ending September 19.

New home sales climbed 7.9% on the month in August, but this wasn't enough to offset the 14.1% fall in July, and the decline in July. Existing home sales have so far been beating new home sales, rising 1.7% on the month to an annualized pace of 5.48 million.

Moreover, homebuilder confidence has stalled and housing starts have disappointed markets.

Investors watch this number because it is considered a leading indicator of the housing market. The PHSI looks at all homes where a contract has been signed but the sale is not complete.