U.S. new home sales are expected to have increased in May. In the prior month, sales had dropped 11.4 percent to a 569,000-unit pace; however, the dropped was slightly tempered by upward revisions to the previous three months of data. Mild winter weather is expected to have pulled some new home sales forward in the year, leading to a smaller than usual April gain. On a year-on-year basis, new home sales rose 11.3 percent from the initial four months of last year. All four regions of the country had recorded stronger sales of new homes through April 2017 than the previous year, especially in the Northeast and Midwest, which were most impacted by the mild winter.
According to Wells Fargo, there is positivity about new home sales in 2017. This view is based on solid demand fundamentals along with lean inventory of available homes. The NAHB homebuilder optimism survey was up in May that underpins the forecast of a rebound in May. Builder optimism waned a bit in June but continues to be elevated near cycle-highs. New home sales are expected to have risen to a 615,000-unit pace, added Wells Fargo.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Forex News