US: Existing home sales likely up 1.1% m-o-m in January - Nomura

Research Team at Nomura notes that the US home sales fell 2.8% m-o-m to an annualized 5490k in December, likely driven by a sharp drop in the housing inventory level.

Key Quotes

“The supply indicator was down to 3.6 months in December, the lowest since January 2005. In January, there may have been some recovery as pending home sales, which tend to lead existing home sales, rebounded in December. Also, steady mortgage applications for home purchases in January and December suggest demand in the housing market may have been sustained in January. Thus, we forecast existing home sales were up 1.1% m-o-m in January, accelerating to an annualized rate of 5550k (Consensus: +0.9% to an annual rate of 5540k).”