New Home Sales Beat Estimates, But Revisions Dampen Rise

Wells Fargo Research Team Wells Fargo

Besting estimates, new home sales rose an unexpected 3.1 percent in September to a 593,000 unit annual pace. On net, revisions show sales over the past three months were 85,000 less than previously reported.

Upward Trend in New Home Sales Still in Place

Sales for newly constructed homes rose in September, but downward revisions to previous months' data somewhat sour the monthly headline reading. On a three-month moving average basis, sales increased 2.0 percent, advancing at an annual rate of 599,000 units, suggesting that despite downward revisions the uptrend in new home sales remains intact. Median prices rose almost 2 percent during the month.

Inventory Remains at Historically Low Level

Sales rose in every region with the exception of the West, which slumped 4.5 percent during the month. That said, sales in the West are up 32.4 percent relative to a year earlier.
Inventory for new homes remains low, with a 4.8-months' supply of homes available for sale at the current sales pace. During the month, there were only 57,000 new completed homes for sale, and 141,000 are under construction.

Download The Full Economic Indicators

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.