U.S. home sales preview – Nomura

By FXStreet Analysts at Nomura offered a preview of the final U.S.s data for the week in existing home sales.

Key Quotes:

“It appears that some snowstorms in January delayed home
closings—as existing home sales are counted at contract closings—leading to a drop-off in sales in February. However, we saw a partial rebound in sales in March, and we expect to see a more complete rebound in April as weather conditions have, for the most part, been favorable for activity over the last couple of months.

The pending home sales index, which should lead existing home sales by a couple of months, increased in both February and March, suggesting that we are likely to see a continued increase in existing home
sales in April.

As such, we forecast a 1.3% increase in existing home sales in April to an annualized 5400k (Consensus: 5400k). We believe the tight supply of homes available for sale will constrain home sales to some extent in the near-to-medium term, and should lead to increased construction of new homes.”
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Source:: FX Street