THE TAKEAWAY:Existing Home Sales Rallied 3.4%> Rebound in Housing Resale is a Good Sign for Economic Recovery> USD/CAD Bearish
Sales of previously-owned homes rebounded for the first time in three months in April on broad-based improvements in sales and prices across all regions.
The National Association of Realtors reported today that existing home sales surprisingly advanced 3.4 percent to a seasonally adjusted annual rate of 4.62 million in February from a downwardly revised 4.47 million in the previous month. The print topped consensus forecast as seventy-three economists polled by Bloomberg survey had anticipated 2.9 percent gain to 4.61 million.
Last month’s reading marks the tenth consecutive month of year-over-year home resale increases, up 10.0 percent from 4.20 million unit-level in April 2011. More Americans take advantage of high affordability conditions as the national average commitment rate for 30-year conventional fixed-rate mortgage fell to 3.91 percent in April from 3.95 percent in March and from 4.84 percent last April. Last week the 30-year fixed rate also fell to record weekly low of 3.79 percent.
Paired with sizable gain in existing home sales tabulated when a contract closes, median prices jumped 10.1 percent to $177,400, the biggest year-to-year gain since January 2006. “A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices”, said Lawrence Yun, NAR chief economist.
USDCAD 1-minute Chart: May 22, 2012
Chart created using Strategy Trader – Prepared by Trang Nguyen
U.S. dollar edged higher versus most of its major trading partners except its Canadian counterpart in North American early morning trade today. The greenback extended loss against the loonie in the minutes following the Existing Home Sales report. The U.S. dollar slipped about 30 pips against the loonie from $C1.0190 to $C1.0165 30 minutes and trades at $C1.0167 at the time this report was written.
--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com
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