Importance: **

Definition: New home sales is a leading indicator of economic activity. The report covers the number of new, privately owned single-family houses sold during the month.
 
 
Related Indicators:

Source: Bureau of the Census of the U.S. Department of Commerce.

Frequency: Monthly

Availability: Four to five weeks following the reported month

Direction:

Timing:

Volatility: Moderate
 
Likely Impact of Financial Markets:

                    Interest Rates: Larger-than-expected monthly increase or increasing trend is
                    considered inflationary, causing bond prices to drop and yields and interest rates to
                    rise

                    Stock Prices:

                    Exchange Rates:

Ability to Affect Markets:

Analysis of the Indicator:

As the data is moderately volatile, it is best to use the three-month moving average and year-to- year
percentage changes. Some economists believe a more accurate indicator is existing home sales,
which uses a sample size four times larger than new home sales data.

The bond market considers this report to be of moderate importance.
 

WEB Links

A Graph of the latest New Home Sales data from Census Economic Briefing Room.

The latest New Home Sales report from the Census Economic Briefing Room.