New home sales in the United States rose during the month of November, beating what markets had initially expected on higher anticipations of a rise in mortgage lending rates after the Federal Reserve raised interest rates for the first time in a year on December 14.
U.S. new home sales increased 5.2 percent to a seasonally adjusted annual rate of 592,000 units last month. October’s sales pace was unrevised at 563,000 units, data released by the Commerce Department showed Friday. Economists polled by Reuters had forecast single-family home sales, which account for about 9.5 percent of overall home sales, rising 2.1 percent to a 575,000-unit rate last month.
On a regional basis, the picture was mixed, with sales falling for the fourth consecutive month in the South and remaining unchanged in the Northeast. Sales in the West rose 7.6 percent m/m, but the overall gain at the national level was driven by a 44 percent m/m surge in the Midwest.
Unseasonably warm weather in the region may have boosted November sales. Despite the mixed monthly picture, national sales are up 16.5 percent y/y, and at an annual pace of 600k units, new home sales will likely support further improvements in residential investment. The housing market remains healthy.
Meanwhile, the dollar index traded at 102.87, down -0.14 percent, while at 6:00GMT, the FxWirePro’s Hourly Dollar Strength Index remained neutral at -14.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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