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Here come new home sales ...

Oct 26, 2015, 19:04 IST

The latest data on new home sales is due from the Census Bureau at 10:00 a.m. ET.

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Economists estimate that sales of new single-family houses fell 0.6% in September compared to the prior month at an annualized rate of 549,000.

Last week, data from the National Association of Realtors showed that existing-home sales rose 4.7% at an annualized pace of 5.55 million in the month - more than expected.

In a preview to clients, Bank of America Merrill Lynch economists noted, "Mortgage purchase applications have increased at a solid rate at the end of the month, likely reflecting a rush in loan applications before the new disclosure rule went into effect on October 3. The new rules will mean that mortgage lenders need to adjust their technology to process loans, creating delays in the process. As such, mortgage brokers may have advised clients to apply for a loan and sign a contract in September. If we do see a notable gain in new home sales in September, we would expect it to be partially reversed in October, however."

We'll be back with the latest data once they cross.

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