US new home sales seem to have dropped slightly in July

US new home sales are expected to have dropped a tad in July. In the previous month, new home sales had risen 3.5 percent. However, they are expected to have dropped to about 570,000 units annualized in July, said Societe Generale in a research note. New home sales usually track well with single-family housing starts.

In July, groundbreaking activity on one-family units rose slightly by 0.5 percent, whereas permits for one family homes dropped by almost 4 percent. This indicates towards certain easing housing demand.

The present sales index of the NAHD index also dropped in July by one point to 63. However, the housing demand outlook continues to be sound, with strong labor market gains, low mortgage rates and gradually rising incomes. Moreover, the current sales component of the NAHB index recovered in August, rising to 65, matching the second-highest reading of 2016.