The New Home Sales report includes the number of single-family homes that were sold in the previous month.
Tomorrow the report will be released at 10:00am EST. The data is forecasted to be 381K, which is the highest in over two years.
The reason the forecast is the highest, could be because of the U.S. Quantitative Easing planreleased earlier this month. The possibility of the increase in home sales was stated in this article, click here. The Fed will be buying $40 Billion per month for an unlimited amount of time.
QE3 could effect the housing market on a grand scale over the upcoming months. As the Fed is throwing cash into bank’s Fed accounts, it increases the amount of money banks have available to loan out. Therefore, banks are encouraged to and have confidence to loan out more money. Hopefully, people will be encouraged to take out more loans stimulating the economy with cash. Interest rates are already very low, so the Fed’s hope is many people will take advantage of this by taking out loans and buying houses.
Last year was not a good year for home sales by any stretch but 2012 is looking up and could gain momentum going into 2013 because of QE3.
The Dollar was strong today and some great Home Sales news tomorrow could give the dollar bulls a greater boost.
For a full calender of news events check out Forex Factory here.
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