Preview: Due January 19 - U.S. December Existing Home Sales - A second straight modest rise
We expect existing home sales to see a modest 0.8% December increase to 3.85m, the increase matching that seen in November which was the first since May and the largest since February.
Mortgage rates moving off their highs have seen survey evidence from the NAHB and MBA moving off their lows, though pending home sales were unchanged inn November, suggesting existing home sales are unlikely to see a strong increase.
The monthly rise is likely to be restrained by a correction lower in the south, which led November’s increase. We expect the median price to fall by 1.5% on the month, which would be a sixth straight decline. However these declines are in part seasonal and yr/yr growth would then pick up to 5.8% from 4.0%, continuing the rebound from a May low of -3.0%.
