US: Existing Home Sales in focus – Rabobank

According to Rabobank analysts, the US existing home sales will be scrutinised for any warning signals that perhaps buyers have turned more cautious.

Key Quotes

“With the Fed cutting rates, lower mortgage rates should support demand. That said, demand could be restrained by rising economic uncertainty caused by the ongoing trade war.”

“Also, if a house buyer has a particularly strong conviction that the Fed is likely to lower interest rates further, he/she may postpone the house purchase to benefit from even lower mortgage rates. The consensus expectation is for a modest 0.7% m/m fall to 5.45mn in September following two months of strong prints.”