Some recovery of the housing market appears to be under way with an increase in April’s Existing Home Sales yesterday. As mortgage rates began climbing buying demand fell. Today we have new home sales and positive expectations as well as an increase in the number of prospective buyers should be good news for the economy in the months to come.
Trading Event: New Home Sales 1400 GMT.
- Despite posting an increase, Existing Home Sales fell short of expectations for April.
- This may indicate that Aprils’ New Home Sales may not meet the forecasted 420,000.
- In March, sales of new homes dropped to an 8 month low of 384,000, representing a second consecutive decline in sales.
- The weak demand was attributed to poor weather earlier on in the year as contracts are not closed until several months after the buying process is started.
- Despite low sales in March building activity remained solid and with
- The positive trend in existing home sales should trickle through to new homes sales.
- Banc De Binary analysts predict that there will be a rise in New Home Sales, indicating a potential upward position in the USD/JPY.