US home resales to climb a two-year high.

Home sales, which are pending that capture contract signings on home resales, rose in April to the highest level since 2007, and sale closings, increased by 4.2% to 5.25 mln in May, allowing for some lags and contract cancellations, being the strongest pace of resale activity since 2013. 

Homebuilders reported the strongest pace in June since 2005 and increased the NAHB sentiment strongly. 

Mortgage applications for purchases are also on the rise and the month-to-date average for June is at highest levels since 2013, or before the taper-tantrum derailed housing demand. 

"New home sales data later this week is expected to show a 6.8% increase which would put activity in this sector at highest levels since 2009. Construction activity appears to be lagging demand, but it is expected to catch up over the coming months and contribute positively to GDP growth and employment. 2.4% GDP forecast for the year assumes a 0.4% contribution from housing, the largest since 2012", says Socgen.