Forex News – US new home sales lower than expected; dollar remains weak

Important: This page is part of archived content and may be outdated.

The dollar maintained losses after disappointing US home sales data.

Americans bought fewer new homes in October than had been forecast as new home builders suffer their weakest year on record.

Figures from the US Commerce department show that sales i new homes rose 1.3 percent to a 307,000 annual rate, which was lower than the projected 315,000 rate. September’s number was revised down to 303,000.

Home sales are expected to fall further to end the year at the lowest level since records began home sales in 1963.

Demand for new constructed homes remains suppressed due to an overload of distressed properties in foreclosure inventories that is weighing on prices of existing houses may keep luring buyers away from new construction, since they get better deals. Builders are still competing with the significant overhang of existing homes for sale.

Also high unemployment in the US that has been hovering around 9 percent for more than two years means sales in new homes will take time to pick up.

The National Association of Realtors showed in a report dated November 21 that sales of existing homes, which make up about 94 percent of the market, actually rose 1.4 percent to a 4.97 million annual rate in October, which was more than expected.

The dollar remained weak after the release of the new home sales data.