US: New home sales to post 0.5% increase in May - Nomura

Analysts at Nomura are forecasting a 0.5% m-o-m increase in US new home sales to 665k saar in May, from 662k in April.

Key Quotes

“While newly built single-family home sales have been recovering steadily, driven by solid consumer demand, rising mortgage costs remain a concern. The prospect of rising rates could compel consumers on the fence to participate in the market now to avoid higher mortgage rates later, but recent rate increases have made it more difficult for first-time home buyers to enter the market. In addition, the ongoing shortage of existing homes on the market and worsening existing home affordability could see more consumers turn to newly built houses.”