New Home Sales, Federal Open Market Committee, Housing to remain strong for 2016
April 25, 2016
Monday – April 25
A sharp decline in the West sent New Home Sales lower in March. Across the country, sales in the East were unchanged, while sales rose in the Midwest and the South. The Commerce Department reported that March New Home sales fell 1.5% from February to an annual rate of 511,000, below the 521,000 expected. Sales were up 5.4% from March 2015 to March 2016. The New Home Sales report shows the number of newly constructed homes with a committed sale during the month.
The Federal Open Market Committee (FOMC) meeting will take place this week on Tuesday and will end on Wednesday with the 2:00 p.m. ET release of its monetary policy statement. The Fed members will discuss the U.S. economic landscape as well as the economic woes that continue to plague global economies. The highly anticipated meeting will garner much of the attention this week as global investors look to the Federal Reserve for any clues as to when the central bank may raise rates again. There is a near zero percent chance of an interest rate hike at this week’s meeting.
Freddie Mac reported on Friday that housing in 2016 is expected to maintain its momentum throughout the year and it expects housing to be an engine of growth. Freddie Mac said construction activity will pick up as we enter the spring and summer months, and rising home values will bolster consumer confidence and help support renewed confidence in the remaining months of this year. In addition, continued prolonged low mortgage rates will also support both the housing and mortgage markets in 2016.