December new home sales will be reported this morning and the market consensus is expecting a monthly decline of -1.5%.
Chicago, IL (PRWEB) January 27, 2014
Peoples Home Equity looks forward to December 2013 new home sales this morning, January 27. In addition the lender is expecting a positive rise in the S&P/Case-Shiller home price index being released on Tuesday, January 28th.
December new home sales will be reported this morning and the market consensus is expecting a monthly decline of -1.5%. According to TradingEconomics.com, if the U.S. Census Bureau actually reports 457,000 new home sales for December, it will be the 4th highest report for the past 5 years. October new home sales were the highest record in the past 5 years. New home sales are vital to continue fueling the rise in U.S. real estate, especially since existing home sales have been lagging. Existing home sales have been lagging since many homeowners are waiting for their home to recover from being under water.
Housing demand will continue to outweigh real estate inventories unless housing starts advance higher. Thus, it’s essential for new home sales need to remain strong so that builders continue having an incentive to construct new homes. Thus, the housing market will benefit greatly if new home sales surprise the upside this morning. If the data is negative there is a pretty good chance mortgage rates may continue lower.
Another important release coming up on Tuesday morning will be the S&P/Case-Shiller home price index. The announced index value will be for October 2013 which is will probably confirm a positive percentage change from September. Interest will be focused on the Las Vegas and Denver markets as one is still far below its peak high, and the latter has already reach all-time record highs. It is doubtful that mortgage rates would react to this information as it is well in the past.
In conclusion this week will be constructive for housing market with data being released this morning.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300