U.S. pending home sales likely to rise in November, recovery to continue into 2017

Pending home sales in the United States are expected to have risen during the month of November, as consumers showcase positive reaction to the sharp changes in the value of real estate assets. Also, households have started to foresee a broader stabilization in real estate prices of the world’s largest economy.

The November NAR pending home sales report scheduled to be released on December 28 at 15:00GMT is expected to increase +0.4 percent m/m in November, following the +0.1 percent m/m increase seen in October. However, some amount of volatility can be observed in the long term as well.

The country has accumulated loads of inventories and foreclosures that need to be taken care of, else prices shall remain dampened. However, the remaining flow of foreclosed and distressed properties still on the market are likely to continue diminishing prospects for broader stabilization for some time, making the recovery in housing a story likely to develop further over the remainder of 2016 and beyond.

Meanwhile, the dollar index traded at 103.12, up 0.10 percent, while at 9:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 107.36 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex