New Home Sales
From The Free Forex Encyclopedia
New Home Sales, or New Residential Sales, is an economic indicator released by the US Census Bureau in report form on a monthly basis. The New Home Sales report offers data on new homes sold, expressed in thousands of homes and broken down by geographic region of the country. The report also tracks the percentage change of homes sold from month to month, as well as details about sales prices, the stage of construction at which new homes are sold, and some other factors.
The New Home Sales report is a lagging indicator of mortgage rates, as well as of the general affluence of the country. The median sales price section of the report is also frequently taken as a measure of currency inflation in housing-sector industries.
Because the report is released at the end of each month, and because monthly fluctuations in new home sales data isn't considered statistically meaningful in most market situations, the New Home Sales report tends not to trigger much market activity on its release. More commonly used as a guide to the exchange market is the Existing Home Sales report, which is released earlier in the month and which features a wider data pool.