New Home Sales
Housing Data for February continues to show signs of stabilizing as long-term mortgage interest rates stabilize. According to the US Census Bureau New Homes Sales slightly beat Bloomberg expectations but still fell slightly from the prior month after being revised higher. In our view Housing demand will be highly dependent on direction of interest rates which appear to be heading higher and the pace of wage growth which has yet to materialize, but may so in the coming months. One may offset the other to some respects, but nonetheless caution is warranted given the larger impact higher interest rates may have.