New home sales in the U.S. surged in the month of November after being on a constant downward trajectory in recent months. Sales were up 16.9 percent, reaching an annual rate of 657k units. Moreover, October’s print was upwardly revised to 562k units. Sales were up in three of the four census regions, with the largest rise in the South and the Northeast.
The West reported sales came in 10k lower than the previous month. However, new home sales estimates are volatile from month-to-month and are prone to substantial revisions. Smoothing through some of this volatility, the three-month moving average of sales came in at 611k in November, still considerably below 660k in January 2018. Inventories represented 6 months of supply at November’s sales rate, decelerating from 7 previously.
“The latest report shows a significant rebound in sales, although one month does not make a trend, and we will be looking for signs that sales continue to grow in the coming months before concluding that the recent softness in activity is likely finished”, said Barclays in a research report.
At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -41.5574 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
