US: Existing home sales to increase 1.5% in May - Nomura

Analysts at Nomura expect US existing home sales to increase modestly in May, up 1.5% to an annualized pace of 5.54mn.

Key Quotes

“Pending home sales, upstream from existing home sales, increased in both February and March despite a modest decline in April, which points to a modest increase in existing sales in May after a 2.5% decline in April. However, continued inventory shortages, worsening affordability and rising mortgage rates pose some downside risk to the medium-term outlook for existing home sales.”