Widely watched measures of existing home sales and new home sales this week, as well as the latest release of the S&P Case-Shiller Housing Price Index, are expected to shed fresh light on the state of the housing market in America. And with the housing market appearing to lag the rest of the economy, that could have a big effect on where equities are heading.
“These housing numbers are the granddaddy of all numbers, if you ask me,” said Anthony Grisanti of GRZ Energy. “If these numbers do not come out good this week, you’re going to look at an S&P that’s going to be a lot weaker. … I don’t think the market or economy can sustain a few more months of weak housing.”
At this point, economists are looking for a mild uptick. Economists polled by Reuters expect existing home sales to register a 1.4 percent rise in May, slightly stronger than the one-month increase of 1.3 percent in April. New home sales are also expected to rise at a slightly faster pace.
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