New Home Sales surge in August
|New home sales surprised to the upside and jumped 20.5% during August. The surge reflects slightly lower mortgage rates and an increase in builders offering buyer incentives. Take the gain with a huge grain of salt. New home sales are prone to heavy revisions. A flat-ish trend in sales, similar to what has been evident all year, seems more likely. The macro implication is inventories remain elevated relative to sales, which implies a reduced pace of single-family construction moving forward. This means residential investment should continue to drag on overall real GDP growth for the next few quarters. New home sales jumped sharply in August. The 20.5% gain marks the largest monthly increase since August 2022. New home sales are highly volatile and prone to heavy revisions. The eye-brow raising jump in sales that was well ahead of consensus expectations makes us suspect a downward revision may be forthcoming.Summary
More noise than signal
New home sales jump in August
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.