Description:

Existing home sales are based upon the number of closings in a given month. Since there is a one to two month lag between a signed purchase agreement and a closing, the prevailing interest rate associated with existing home sales is from when the purchase agreement was drafted.

Released:

The 25th (or the closest business day) of every month for the month prior

Calculation:

Existing home sales are calculated by the National Association of Realtors (NAR); they take closing information from about 400 listing boards, which are divided into regions (Northeast, Midwest, West, and South). Seasonal adjustments are considered.

Key Point:

About 80% of home sales are existing homes- with the remainder being new home sales. Existing sales tend to be important because the exchange of capital can indirectly be beneficial to the economy. Figures are calculated at closing- so there may be some delay between when buyers initiate the contract on the house, and when the close was actually signed; which can mean that markets conditions can change over that period.

Release site: Click here