Today we have the release of Pending Home Sales data. With New and Existing Home sales beating expectations, the real estate market appears to be gaining some stability after a sharp snapback following a difficult winter. The markets are looking for this momentum to continue and it is widely expected that the results today will be positive.
Investor Notes: U.S. Pending Home Sales, 1400 GMT.
- New Home Sales surged to the highest level in May since January 1992, posting an 18.6% rise on the previous month.
- Pending Home Sales increased modestly in April up by 0.4%, which was below the forecast of a 1.1% rise.
- However, mortgage application activity remained slow, this year’s number of mortgage application are approximately 15% below last year’s level.
- Pending Home Sales are forecasted to rise by 1.4% for May and given the increase in New Home Sales, it appears this is a realistic expectation.
- Banc De Binary analysts predict that there will be a rise in Pending Home Sales, indicating a potential upward movement in the USD/JPY.