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

U.S. new home sales are likely to have eased slightly in June after rising in the prior month. In May, new home sales had risen 6.7 percent to a 689,000-unit pace, following a drop 3.7 percent in April. The housing market continues to be restrained by tight inventories of existing single-family homes, which is possibly underpinning a more rapid rate of new home sales. Although new home inventories are also low, builders continue to be comparatively positive even as they continue to face increasing materials costs in the midst of recently-imposed tariffs, stated Wells Fargo in a research report.

The South continued to be a standout in May, with new home sales rising 17.9 percent to a new cycle high, while sales dropped in the West and Northeast. Development in the South continues to be strong, where housing starts rose over 13 percent year-on-year, and the region looks poised for further expansion.

“The average price of a home fell 2.6 percent from a year ago to $369,000 in May, likely due in part to increased sales in the South, where homes tend to be relatively more affordable”, noted Wells Fargo.

At 22:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -91.9502. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex