Back
22 Apr 2015
US homes sales set to recover – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, expects US existing home sales to register a rebound to 3.5% mom, and remains more hopeful for 2Q growth after weather softened the first quarter for the economy.
Key Quotes
“The March data so far has been better (such as the increase in retail sales) and with consumer confidence remaining at high levels we expect other data releases to bounce back too. That includes today’s existing home sales report. We expect a 3.5% MoM rise, taking sales to an annualised rate of 5.05 million.”
“The strength seen in pending home sales offers support to this view while the fact employment continues to rise, real incomes are strengthening and mortgage rates are low also offers encouragement that we will see a bounce back in the data now that the weather has returned to more normal patterns. This, in turn, is good news for retail sales given the strong relationship with home sales – people tend to by new carpets, home furnishings, etc when they move house.”
“Consequently, while 1Q GDP may be grim, we are much more hopeful for 2Q growth, which should help cement market expectations for a rate hike, within the next two quarters.”
Key Quotes
“The March data so far has been better (such as the increase in retail sales) and with consumer confidence remaining at high levels we expect other data releases to bounce back too. That includes today’s existing home sales report. We expect a 3.5% MoM rise, taking sales to an annualised rate of 5.05 million.”
“The strength seen in pending home sales offers support to this view while the fact employment continues to rise, real incomes are strengthening and mortgage rates are low also offers encouragement that we will see a bounce back in the data now that the weather has returned to more normal patterns. This, in turn, is good news for retail sales given the strong relationship with home sales – people tend to by new carpets, home furnishings, etc when they move house.”
“Consequently, while 1Q GDP may be grim, we are much more hopeful for 2Q growth, which should help cement market expectations for a rate hike, within the next two quarters.”