Pending home sales saw a 1.1% increase in September.

• In September, there was a 1.1% month-on-month growth in pending home sales.

• Despite increasing interest rates, pending home sales saw an increase, which is positive for the U.S. dollar.

• The SP500 continues to face pressure as it experiences a significant pullback, while traders in the gold market are anticipating updates from the Middle East.

On September 26, the National Association of Realtors published the Pending Home Sales report for September. The report revealed a 1.1% month-over-month increase in Pending Home Sales, surpassing the analyst consensus of -1.8%.

Year over year, there was an 11% decline in Pending Home Sales, which was less severe than the expected 16% decrease according to analysts.

The National Association of Realtors noted that while there was a slight gain, pending contracts are still at historically low levels due to high mortgage rates, coupled with limited inventory affecting sales but keeping home prices high.

The association predicts a 17.5% decrease in Pending Home Sales for 2023 and a 13.5% growth in 2024.

Following the positive report, the U.S. Dollar Index strengthened. The rise in Pending Home Sales is seen as beneficial for the U.S. dollar, indicating that home sales can increase despite higher interest rates.

Gold prices have remained around $1975 as traders monitor Middle East developments, with strong demand for safe-haven assets providing ongoing support to the gold markets.

The SP500 retreated towards the 4160 level in response to the Pending Home Sales data. The downward movement persists, and traders remain cautious as they await the upcoming Fed decision next week.