Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

New Home Sales

What it is:

New Home Sales is an economic indicator released monthly by the United States Census Bureau. The data reflect the number of newly constructed homes purchased in the previous month.  

How it works (Example):

This indicator reflects contracts signed to purchase homes, not homes being built. Therefore it does not reward unnecessary construction of homes.

Why it Matters:

New Home Sales react strongest to changing mortgage rates, and provide an indication of inflation in the housing sector. However, markets react more to another indicator, Existing Home Sales. This measure is released earlier in the month, and has a sample pool four times the size of New Home Sales.