|10-Year: +7/32....%.... GNMAs: .... USD/JPY: 111.93.... EUR/USD: 1.1204|
-- U.S. Dollar Index sets fresh 2019 high
-- 9:00 ET: February FHFA Housing Price Index (actual 0.3%; prior 0.6%)
-- 10:00 ET: March New Home Sales (actual 692,000; Briefing.com consensus 646,000; prior 662,000)
-- 13:00 ET: $40 bln 2-yr Treasury note auction meets solid demand
- New home sales in March increased 4.5% m/m to a seasonally adjusted annual rate of 692,000 (Briefing.com consensus 646,000), which was the strongest pace since November 2017. Sales were up 3.0% yr/yr.
- The key takeaway from the report is that the solid sales activity was helped by a 9.8% decline in the median sales price and lower mortgage rates, which goes to show the pent-up potential for sales activity if the combination of lower prices and lower mortgage rates persists.
- The median sales price declined 9.8% yr/yr to $302,700 while the average sales price increased 1.8% to $376,000.
- New home sales were up in all regions, with the exception of the small Northeast region (-22.2%). The South, which is the largest region, saw sales increase 3.6%. Sales in the Midwest were up 17.6% while sales in the West were up 6.7%.
- Homes priced at $399,999 and less accounted for 71% of total homes sold in March versus 70% in February.
- The inventory of new homes for sale decreased to a 6.0-months' supply in March from 6.3-months' supply in February.
- Yield check:
- 2-yr: -4 bps to 2.35%
- 3-yr: -3 bps to 2.32%
- 5-yr: -4 bps to 2.35%
- 10-yr: -3 bps to 2.56%
- 30-yr: -1 bp to 2.98%