US: New home sales likely to increase 2.0% in July - Nomura

Analysts at Nomura expect the US new home sales to increase 2.0% m-o-m to an annualized pace of 644k in July after a 5.3% decline in June.

Key Quotes

“Single-family permits increased in both June and July while the NAHB’s housing market index for single family homes remained elevated. While monthly readings tend to be volatile, we continue to expect gradual improvement in new home sales this year considering solid economic momentum.”

“Initial jobless claims: Initial and continuing claims continued to trend lower in recent weeks. Looking through weekly volatility, low initial and continuing claims appear consistent with continued labor market strength. We continue to expect low readings in the near term.”