US new home sales went above expectations, adding 1% in July, supporting the short-term risk-on momentum and further pushed the S&P500 index into the area of historical highs near 4500.
However, the longer-term chart shows that US newbuilding sales have returned to a long-term rising trend in 2021 after a spike in 2020.
The boom in the US housing market was short-lived in terms of volume, but not of prices, which continue to update highs. Presumably, this jump in prices is making people hesitate to buy new houses, the median price of which exceeded 390k in July (+18.4% y/y).
The home sales statistics once again highlighted the inflationary trends in the USA caused by supply disruptions of certain commodities. But it isn’t easy to discern a housing boom like in the 2000s. The same applies to the 40% increase in used cars due to the shortage of semiconductors. Increasing rates will tighten conditions for buyers and risk collapsing demand, but it is unlikely to reduce prices.
The FxPro Analyst Team
The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…
Bitcoin finds support near the 50-day moving average, but further declines in the stock market…
- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…
- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…
The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…
The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…
This website uses cookies