FXstreet.com (Barcelona) - Doubts about the pace of the recovery of the US real estate market have been fueled by disappointing new home sales which fell 7.6% in December to 342,000, down from 370,000 single family homes sold during the preceding month.

The market had expected new home sales to rise to around 372,000 units.

The number of New Home Sales released by the US Census Bureau is an important measure of housing market conditions. House buyers spend money on furnishing and financing their homes so as a result the demand for goods, services and the employees is stimulated. A high reading is seen as bullish for the USD, whereas a low reading is seen as bearish.