U.S. new home sales likely to have eased slightly in December

New home sales in the U.S. are expected to have declined in December after surprising on the upside in the previous month. In November, new home sales had grown 5.2 percent to 592,000 units annualized, the highest level since July.  According to a Societe Generale research report, the pace of sales is expected to have eased to about 575,000 units.

Single-family housing starts, which are a good indication of sales given that builders usually do not begin a new home until they have a buyer, dropped by around 9 percent in November and December combined. In the meantime, the MBA purchase-only index, which had risen almost 13 percent in November, dropped by slightly more than 2 percent in December. This hints at a slightly lower rate of demand last month, added Societe Generale.