US: Existing home sales to increase modestly by 0.2% - Nomura

Analysts at Nomura expect US existing home sales to increase only modestly by 0.2% m-o-m to an annualized rate of 5390k.

Key Quotes

“Incoming data on pending home sales, which track contract signings, were weak in January, suggesting some drag on existing home sales (contract closings). Although consumer fundamentals remain favorable, mortgage applications for home purchases fell in February, pointing to some downside risk on our existing home sales forecast. Looking ahead, the ongoing shortage of previously owned homes for sale as well as the prospect of rising mortgage rates will likely weigh on sales.”