CNBC’s Olick says pending home sales index is volatile

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CNBC’s Diana Olick said that the pending home sales index is subject to greater volatility than the existing home sales number because mortgage processing time has increased and more contracts are falling through due to the tightening lending market. Pending home sales rose 6.7 percent in April for the third straight month, and the northeast was the region to see the highest increase, with a 32 percent jump. However, Olick said it is important to note that these numbers are based on contracts signed, not closings. And first-time home buyers looking to benefit from favorable market conditions may find some trouble as mortgage rates have slightly ticked up.