(MENAFN– ecpulse) Existing home sales, posted on Wednesday`s calendar, increased as buyers scrambled to lock in still low mortgage rates in case they move higher, this may point to risk for today`s new home sales report.
According to consensus forecast, Americans bought slightly fewer home in July. New Home sales probably fell last month to an annual rate of 487 thousand, after sales jumped in June to an annual rate of 497 thousand – the highest level over five years.
The recent surge in U.S. bond yields has rattled traders and triggered volatility across the FX markets on the heels of the Fed`s tapering speculation. A consensus still beleives the Fed might start tapering its quantitative easing program as soon as next month.
U.S. benchmark 10-year treasuries yielded more tha 2.9 percent for the first time in more than two years in respone to continued worries over a coming squeeze to Fed bond buying, which could push mortgage rates even higher slowing the U.S. housing recovery.
Despite the increase, mortgage rates remain low by historical standards. Americans took benifit last month from the still low rates, as sales of existing home reached a four-year high, marking the latest piece of goods news for the housing market.
Meanwhile, Wall Street is expected to open lower after the Commerce Department issued the report at 10 a.m. EST.
Ahead of the opening bill on Thursday, U.S. stock-index futures moved as follows:
- DJIA futures was down 0.08 percent at 14,926
- S&P 500 was down 0.06 percent to 1,653.70
- NASDAQ 100 was nealry flat percent at 3,101.05
- Data as of 07:05 a.m. EST.
The Federal Reserve will grab heavy attention before the weekend, with officials meetings for an annual symposium in Jackson Hole, Wyoming.
Fed Chief Ben S. Bernanke will not attend the Kansas City Fed Symposium. Instead, Fed Vice Chair Janet Yellen will be present, thus traders will be laser-focused for any indication when the central bank might start squeezing its massive bond purchasing program.
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