10am EST tomorrow, the United States Existing Home Sales are expected to rise from last month’s release of 4.47M.
Home Sales could help keep the USD strong as we go into the second part of the week.
[column size=”1-2″ last=”0″ style=”1″] We could be heading into an economic season where home sales increase. According to Mark Vitner, a senior economist for Wells Faro, that could be sooner than we think: “I do think that we’re getting close to the point where we are going to get some soft of significant contribution from housing,”.
Cheaper properties, plus low interest rates could result in a booming housing market.
QE3’s Significance for the Housing Market
QE3 is predicted to effect the Home Sales in the coming months. It could be because of what we mentioned above concerning cheaper properties and low interest rates.
Here’s what happens, QE3 slings cash into bank’s Fed accounts. In result, the banks have more money to loan. The purpose of QE3 is that, hopefully, this will encourage people to take out more loans and circulate the cash in the economy. Therefore, people may be more prone to take out loans to buy houses.
Simple concept… will it work? That’s a whole other subject.
Find my thoughts on it here on my article that dives deep into the subject of Quantitative Easing and QE3.
As well as the Existing Home Sales, Building Permits and Housing Starts will also be announced tomorrow. Both of the later at 8:30am leading up to the Home Sales announcement at 10am.
If we do have good U.S, Dollar news tomorrow in the A.M. I would expect it to help the AUDUSD to continue it’s fall down towards the 1.040 area, maybe breaking it soon.
For some other thoughts and info on the news being released tomorrow check out Forex Factory and Henry Liu’s site.
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