US: Expect 4.9% m-o-m increase in new home sales - Nomura

Analysts at Nomura expect a 4.9% m-o-m increase in US new home sales to a 656k annualized pace in January to follow the 9.3% plunge in December.

Key Quotes

“Our forecast for January new home sales reflects decent increases in single family residential construction permit data in prior months and expected positive payback from the sharp decline in December. However, December’s broad-based declines in new home sales point to some downside risks to our forecast. We remain conservative on near-term sales as low inventories will likely continue to constrain sales and rising interest rates could raise borrowing costs.”