US: Expect a modest increase in July existing home sales - Nomura

Analysts at Nomura are forecasting a modest increase in the US July existing home sales despite ongoing structural impediments in the market for existing homes.

Key Quotes         

“Overall, we expect existing home sales to increase 0.6% m-o-m in July to an annualized pace of 5.41mn after two consecutive months of declines. Pending home sales, which tend to lead existing sales, increased steadily by 0.9% m-o-m in June after a 0.5% decline in May.”

“However, given ongoing challenges in the market for existing homes, including supply shortages and rising mortgage rates, the expected increase in July could prove transitory.”