US New Home Sales

The US New Home Sales will be released at 10:00 AM EDT.  On Friday the Existing Home sales which acccount for over 80% of home sales showed a gain to 518K annualized pace from 491K last month. This was higher than expectations.  The supply of homes on the market also improved to 9.9 months from 10.6 months. 

For the New Homes Sales the expectation is for a decline to 450,000 annualized units from 460,000 last month. This would be a 2.2% decline (assuming no revision).  The sales pace has not been this low since January 1991.  The month supply of homes rose to 10.9 months last month from 10.3 months.  This was disappointing as the supply should be slowing as builders stop building. 

Also, on tap this morning is the New Home sales, the sister release to the existing home sales data that was released on Monday.   This will be released at 10:00 AM.