Today’s strongly optimistic housing data out of the United States’ economy gives reason to breathe for many long-term investors. The Pending Home Sales report, published by the National Association of Realtors, measures the change in total number of housing sales which are in final processing and only require the closing transaction.
It is a report measuring percentage changes from month-to-month so as to highlight the level of expansion and contraction in the housing market. This month’s figure showed a booming 5.1% expansion in pending home sales for the month of April, up significantly from last month’s 0.7% expansion.
The summer months are usually when new homes are purchased; making this figure less dramatic than it would be in a winter month. But the data is relevant when connected with statements by Federal Reserve Board Chairman Ben Bernanke about American economic recovery yesterday. If the housing market truly is on the path to recovery, then the US economy is not in as bad as shape as some may have initially thought. The US dollar is likely to persist in its recent bearishness, but this data gives cause for a breather among the recent series of high tension, pessimistic reports.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
