US: New home sales to decline 3.0% in August - Nomura

Analysts at Nomura expect the US new home sales to decline 3.0% m-o-m to 608k saar in August, following soft readings for housing starts.

Key Quotes

“Permits for new singlefamily housing declined sharply in August, suggesting weaker sales activity in the month. Although m-o-m readings can be volatile due to a relatively small sample size, we expect only modest improvement in the underlying pace of new home sales as inventory remains low. Slower sales activity so far in Q3 will likely lower residential investment.”