I think the 0.7% unexpected rise is only an illusion. It ignores 2 major factors:

1. The pending sales can’t guarantee that all houses will be closed. The fell out subprime and the sentiment of buyers (changing their mind) may affect the percentage of houses being closed.

2. The pending sale is up 0.7%, but it is still 8.5% Down from last year.

The stock is up because the 0.7% rise beats the estimation and the oil is down. It does not mean the real estate is stronger. We will have a bigger picture in summer for both housing and stock markets.