US new and existing home sales for June to release on July 24 and 22

US new and existing home sales for June will be released on July 24 and 22 and anticipating ongoing strength in home sales despite a small drop in momentum. Existing home sales could well hold in the 5.35m annualized range in June as leading indicators ranging from mortgage applications to pending home sales were solid to rising throughout the AprilJune period. 

"We're not looking for more because existing home sales hit a post-crisis high in May, so the leading indicators are pointing to an acceleration from an already very high level and we're a bit more cautious," says Scotiabank.

The general overall strength in leading indicators implies potential for solid new home sales as well - and leading indicators that pertain more explicitly to new home sales, such as foot traffic through model homes, picked up in June, though it had been a bit soft in April and May. 

"We're expecting new home sales to come in at an annualized 535k vs. 546k in May - still a solid level. We see overall upside for both as H2 unfolds," continued Scotiabank.