U.S. new home sales expected to remain constrained in 2016, downward pressure to persist further

New home sales in the United States are expected to remain constrained through 2016, while expecting a possibility of a further slowdown in the near term.

The November Commerce Department new home sales report scheduled to be released on December 23 at 15:00GMT are expected to remain constrained in 2016, continuing to face supply distortion and generally subdued conditions. The indicator is expected to show an increase to around 580k.

On balance, the new home sales report should continue reflecting tenuous buying conditions in the coming months, which stand to be held down by supply of homes already on the market.

The third estimate of Q3 GDP was revised higher to 3.5 percent from 3.2 percent in the second estimate, a touch stronger than consensus of 3.3 percent, data released by the Commerce Department’s showed Thursday.

US’ FHFA purchase-only House Price Index rose 0.4 percent m/m in October, a touch lower than consensus estimates of 0.5 percent, taking the y/y growth to 6.2 percent, around the same pace recorded at the turn of the year, data released by the Office of Federal Housing Enterprise Oversight (OFHEO) showed Thursday.

Meanwhile, the dollar index traded at 103.04, down -0.05 percent, while at 8:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 19.84 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex