Goods Orders and Home Sales may Point to Strengthening US Economy

By TraderVox.com

The market is expecting a rise in the Home Sales and Goods Orders in the month of July in a report to be released this week. This is expected to be confirmed later in the week showing that the US economy is starting to strengthen after slowing down in the second-quarter…

Tradervox.com (Dublin) – The market is expecting a rise in the Home Sales and Goods Orders in the month of July in a report to be released this week. This is expected to be confirmed later in the week showing that the US economy is starting to strengthen after slowing down in the second-quarter. According to a market survey, the rate purchases of new and existing houses climbed to 4.89 million annual rate in July from 4.72 million in June. Another report is expected to show that the bookings for long lasting goods increased this year.

The housing and goods data is used by the Federal Open Market Committee in making decisions regarding the US economy. In its recent meeting, the FOMC is expected to have considered the developments in this sector. This will be confirmed when the Meeting Minutes are released later this week. The positive Homes Sales and Goods Orders reports have been boosted by cheaper property prices and low mortgage costs. Investors will be waiting on this report it helps to shape sentiment about quantitative easing. According to Omair Sharif, there is a positive outlook for the US economy in the third quarter compared to the second quarter. The Home Sales and Goods orders data will point to this improvement.

Housing data from National Association of Realtors is expected to show that existing house sales climbed by 3.3 percent to 4.52 million annual rate after registering a 4.37 million rate in June. New Homes Sales data which will be released a day later by the Department of Commerce is expected to show a rebound to 365k annual rate from July’s 350k rate.

There is evidence that the housing sector is improving, with reports last week indicating a rise in residential construction permits. However, the housing starts fell from its fastest rate in three years in July, but National Association of Home Builders /Wells Fargo Index showed a rise in builder confidence in August.

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