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Pending home sales fell by 2% in August as mortgage rates rise

Yahoo Finance Live anchors discuss August pending home sales data.

Video Transcript

JULIE HYMAN: Yeah, pending home sales falling more than estimated here by 2% in August. That's the month over month figure. Remember, that's August, so a little bit of lagging indicator here. If you look on the year over year business-- basis, down 22 and 1/2% for those pending home sales. So this is before signing, right? So pending home sales. A little bit of a revision the prior month to not be as large of a drop, 6/10 of 1% instead of 1%.

But still, the trajectory is clearly downward. This is the seventh time this year that we have seen this pending home sales measure decline. And we know all the things that are going into this, right? We're seeing what's happening in the housing market with affordability. We're seeing what's happening with interest rates, mortgage rates going higher, above 6%. So all of this contributing to the downturn that we are seeing in the housing market. Brad, I don't know if there's any effect on the market here. I mean, this is sort of more of the same when it comes to the housing data.

BRAD SMITH: More of the same, but it's an interesting move that we're tracking here, actually. If you're looking right at the 10:00 AM hour when this crossed, we actually saw a bit of a move higher here on the Dow Jones Industrial Average, 4/10 of a percent higher on the day. And so ultimately, we're still holding onto gains for the Dow and the S&P 500. The NASDAQ has been in a bit of a waffling Wednesday activity here that we've been tracking as well. We'll take you to that chart.

And potentially, it could be the markets looking at this and digesting lower bids or, kind of on the housing market, this worse than expected reading as actually good news because if you do see some softening continuously in housing, then could that anticipate or could that be factored into the markets as something that the Fed will pay closer attention to?

Time will tell there, but also continuing to take a look at the S&P 500-- and I'll get to some sectors in a hot second there-- we're up by about a quarter of a percent. Just briefly here, to take you to those sectors that I mentioned, we've really only got one decliner here on the day, and that is technology here. You've got XLK. Well, now you've seen one other sector enter into negative territory as well. But technology is zeroing in on that. It's down by about 1%. And we'll take a quick look at the NASDAQ to see the biggest names that are declining. As of right now, it's Apple. Apple intraday right now down by about 3.9%.