Monday Market Forecast: Existing Home Sales, New Home Sales, and FOMC Minutes
Mortgage rates are fluctuating at a steadier pace following last week’s drastic spike. Following solid gains in housing starts and retail sales, this week brings the existing home sales report for October to be released on Tuesday and the new home sales report for October to be released on Wednesday. Also scheduled for release on Wednesday are the FOMC minutes from the November 2nd meeting.
Janet Yellen spoke last week indicating that the Fed could raise interest rates relatively soon. Because of the election results, some economists are predicting the probability of the rate hike has decreased and others are claiming it is completely off the table. The Fed made no changes the week before the election, and the minutes from that meeting will come out Wednesday.
Existing home sales have been on the rise, with a 3.2% increase in September’s report, following a sizable rebound from summer’s sales slump. Existing home sales have felt the constraints of reduced inventory, resulting in a heated housing market.
New home sales, the measure of newly constructed homes with a committed sale, have been on the decline since August. The September to October decrease was softer than the August to September drop, so sales may level out this month.
Last week brought fairly positive housing numbers, this week’s report has the potential to keep that momentum going.
Sources: Bloomberg, MarketWatch, CNNMoney, Mortgage News Daily