Pending Home Sales Report Today: Why It Matters for You and the US Dollar
What’s Pending? Think of It Like Booking a Flight
The National Association of Realtors (NAR) is set to release its Pending Home Sales Index for July today—August 28, 2025—at 10 a.m. ET. This closely watched report offers one of the clearest forward-looking signals of the U.S. housing market's momentum, delivering important clues for Forex trading, particularly in currency pairs tied to the U.S. dollar.
Imagine you book a flight for next month. You haven’t flown yet, but your ticket shows you’re likely going to travel. Pending Home Sales work the same way: people signed contracts to buy houses, but the deal hasn’t fully closed. Because of that, this report predicts future home sales activity—making it a valuable “sneak peek” at the U.S. economy.
Why This Report Matters
Pending Home Sales measure homes under contract but not yet closed, making it a leading indicator—typically preceding the Existing Home Sales data by several weeks. The ripple effects on the economy are notable:
Increased home-purchase activity often leads to demand for mortgages, furniture, and renovations.
These cycles boost consumer spending and financial services, underpinning broader economic trends.
This spending supports the entire economy. When more homes are sold, the economy feels stronger—and global traders take note. That’s why currencies like EUR/USD, GBP/USD, and USD/JPY often react right after this report.
How to Read the Numbers
If the Actual number is higher than expected, it means people are buying homes faster → good for USD.
If the Actual number is lower than expected, it suggests fewer homebuyers → bad for USD.
Example:
Forecast = +0.5%
Actual = +1.2% → Traders may see the USD strengthen.
Actual = -0.8% → Traders may see the USD weaken.
How Housing Moves the Dollar
USD / EUR (EUR/USD) – A stronger U.S. housing signal could lift the USD, pushing EUR/USD lower.
GBP / USD (GBP/USD) – Sensitive to U.S. data; a strong/USD showing may drive volatility.
USD / CAD (USD/CAD) – Housing demand affects consumer behavior and commodity demand, relevant to the Canadian economy.
USD / JPY (USD/JPY) – Often reflects risk sentiment; a resilient housing outlook could drive USD strength here.
Why Ordinary People Should Care
Even if you’re not a trader, housing trends affect daily life:
Strong housing = more jobs, rising property values, and better access to credit.
Weak housing = slower growth, tighter lending, and possibly falling home prices.
For homeowners, this can mean whether your property’s value rises or falls. For renters, it may affect whether landlords raise rents. And for everyone, it influences the strength of the U.S. dollar, which impacts prices of imported goods, travel costs, and even fuel.
Final Takeaway
The Pending Home Sales report isn’t just about real estate—it’s a window into the overall health of the U.S. economy. For Forex traders, it can spark movement in key pairs like EUR/USD, GBP/USD, and USD/JPY. For everyday citizens, it influences jobs, credit, rent, and even the cost of living.
Whether you’re trading currencies or simply planning your household budget, remember: When homes move, so does the economy—and so does the dollar.
Stay with GME Academy for the post-release breakdown. We’ll explain how the actual numbers affect the Forex market and what it means for your finances.
