Most important economic news for today:
Forex News
US New Home Sales, the news will be released at 14:00 server time.
Market Impact : High (USD). Previous Score: 394 to -13.4 % m / m, the
forecast - 422 to 7.9% m / m
New Home Sales shows the number of
houses built with a commitment to sales during the month. The level of
new home sales shows trends on the market and, thus, the economic
situation and the purchases of consumers household goods and furniture
in the future.
The importance of this indicator is that it
reflects not only the demand for houses, but the overall economy. People
buy a house when estimate their financial position like as very
comfortable and confident. Moreover, such a seemingly small amount of
data has a huge multiplier effect on the whole economy, and through it
on the markets and on your investments.
By monitoring economic data such as new home sales, investors can find a specific investment
idea, as well as get a general guide to the portfolio management. Each
time when you start building a house, it creates jobs and income, which,
in the end, will once again return to the economy. When the house is
sold, it brings income to the builder and realtor, and also creates a
lot of ways to spend money to the buyer. Refrigerators, dishwashers,
dryers, washing machines are just the tip of the iceberg of what you
need to buy for your new home. The economic ripple effect is very
significant, especially when you realize that every month around the
states are sold thousands of homes.
When the recession in the
economy has the most profound impact on financial markets, new home
sales directly affect stocks and bonds and commodities. More
specifically, the trends in sales of primary home seriously affect the
status of the builders, mortgage lenders and companies that sell
products for home.
Indicator of new home sales is published
monthly (around the 25th of the following month) by US Census Bureau.
Often the data is revised for the previous few months.
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