U.S. Existing Home Sales Actual 4.68M, Expected 4.65M Previous 4.57M 

 

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Release Explanation: Annualized number of existing residential buildings that were sold during the previous month, excluding new construction. They include both quantity and price statistics. An important release since the housing market is included in most economic forecasts including retail Sales, CPI, and PCE.  A happy householder will usually lead to a strong economic outlook. A miss here, either way, and the Markets gets to see the real confidence of the US consumer. There is a very strong impact on the sentiment towards the US Dollar from this report.
 

Trade Desk Thoughts: Existing-home sales increased 2.9% a 4.68M annual pace in April with strong buyer activity in lower price ranges, the National Association of Realtors said today.
 

Single family home sales rose 2.5% to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8% below the 4.30 million unit pace in March 2008.
 

The national median existing home price for all housing types was $170,200 in April, which is 15.4% below 2008. Distressed properties, which accounted for 45% of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
 

Total housing inventory at the end of April rose 8.8% to 3.97 million existing homes available for sale, which represents a 10.2 month supply compared with a 9.6 month supply in March. 
 

Forex Technical Reaction: U.S. equity markets open the session lower and have continued to move lower since the release. The currency market has seen wild swings since the release, but, overall, the dollar has strengthened against the other major currencies.