Preview of existing home sales for the US session - Nomura

Analysts at Nomura offered a preview of the Existing home sales from the US session tonight.

Key Quotes:

"We expect existing home sales to increase 0.9% m-o-m in August to an annual rate of 5.49mn saar (Consensus: 0.2% to 5.45mn). In the long run, rising home prices and lean inventories may negatively affect headline existing sales. However, demand and consumer fundamentals over the near term remain strong, in our view.
 
Pending home sales, downstream from existing sales, have been improving after weakness earlier this year. Moreover, home affordability for new homes has deteriorated at a relatively faster pace compared to existing homes. Both of these trends support our forecast for August."