The data released today is expected to show signs of increasing activity in the housing market, after mortgage rates began climbing the past summer essentially, putting a strangle-hold on home buyers. Existing home sales have been suffering for the start of this year and any recovery in housing market slack will bode well for the economy.
Trading Event: Existing Home Sales, 14:00 GMT.
- Previous Existing Home Sales came in at a figure of 4.59 million and are forecasted to rise by 0.6% to 4.71 million today.
- Supply has increased along with the number of first time buyers, perhaps due to improvements in the labour market.
- Pending home sales rose by 3.4% in March following an over 6 month decline, suggesting that there are more contracts being processed which should indicate higher sales.
- Relaxation of tight credit conditions especially in the mortgage rates market, should translate into more commitments from consumers to buy rather than rent.
- Banc De Binary analysts predict there will be a rise in existing home sales this month, indicating a potential downward movement in the EUR/USD.