Pending Home Sales

April Pending Home Sales, a measure of contract signings and thus a
precursor to the existing home sales data, rose 6.7% m/o/m, much better
than expectations of a gain of .5% and follows a 3.2% m/o/m rise in
March and a 2% gain in Feb. The gain was led by a 32.6% gain in the
Northeast followed by a 9.8% rise in the Midwest, the two areas of the
country that has lagged the South and West which were little changed.
Y/o/Y, pending sales are now up 3.3%. According to, the
average 30 yr mortgage rate in April was 4.95% and as of last night it
was at 5.32% so the data in the next few months will tell us how
sensitive the market is to higher mortgage rates. The NAR chief
economist said, “housing affordability conditions have been at historic
highs, but now the $8000 1st time buyer tax credit is beginning to
impact the market.” “1st time buyers must finalize their purchase by Nov
30 to get the credit.”


Although the information contained herein has been obtained from sources
Miller Tabak + Co., LLC believes to be reliable, its accuracy and
completeness cannot be guaranteed. This report is for informational
purposes only and under no circumstances is it to be construed as an
offer to sell, or a solicitation to buy, any security. At various times
we may have positions in and effect transactions in securities referred
to herein. Any recommendation contained in this report may not be
appropriate for all investors. Trading options is not suitable for all
investors and involves risk of loss. Although the information contained
in the subject report (not including disclosures contained herein) has
been obtained from sources we believe to be reliable, the accuracy and
completeness of such information and the opinions expressed herein
cannot be guaranteed. An options disclosure document may be obtained
from Mr. Jay Stenberg, Miller Tabak + Co., LLC., 331 Madison Avenue, New
York, NY 10017. Additional information is available upon request.


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