U.S. new home sales fall for second month in January

New home sales in the U.S. dropped for the second consecutive month in January. The new home sales fell 7.8 percent to a 593,000-unit pace from an upwardly revised December print. Upward revisions going back to October imply some weather-related disruptions were still playing out in the data, stated Wells Fargo in a research report. New home sales decelerated for the second month in the Northeast and the South. Meanwhile, sales rose in the Midwest and the West.

The supply of new homes for sales was up to a 6.1 months’ supply in January, which is the highest since 2014. Most of the new homes for sale were under construction, and there has been a marked rise in sales of homes not yet started in recent months. The new inventory to the market sets the stage for an active spring selling season as demand is solid. However, the activity might be challenged by rising mortgage rates as the Fed tightens policy this year, added Wells Fargo.

At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -38.6764. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest