U.S. existing home sales likely to have increased slightly in may
Source: FxWire Pro - Commentary / 17 Jun 2018 02:18:22 America/New_York
U.S. existing home sales are likely to have increased slightly in May. In April, existing home sales fell 2.5 percent to 5.46 million unit annual rate, after rising in the prior two months. The softness was in single-family sales, which had dropped 3 percent on the month. Inventory constraints are clearly holding back the resales market and the associated economic activity sales provide.
Evidence that buyer demand is not the issue is that homes are selling rapidly at an increasing prices. The typical home sold in April was on the market for just 26 days. Contributing to the competition between buyers for newly listed homes in the solid job market putting homeownership in reach for more Americans.
Home prices are increasing at a more rapid rate than income in several areas, however, challenging affordability. Borrowing costs are set to rise as the Fed normalizes policy, and higher mortage rates are expected to worsen affordability challenges as borrowers pay a larger share of their incomes towards interest, stated Wells Fargo.
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