Here Comes New Home Sales...

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New home sales for February are out at 10 a.m. ET.

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Economists polled by Bloomberg are looking for new home sales to fall 3.9 per cent month-over-month, to an annual rate of 420,000.

This compares with a 15.6 per cent rise in January to an annual rate of 437,000.

Bank of America’s Michelle Meyer told Business Insider that the month-over-month number tends to be extremely noisy and that we should expect downward revisions to January’s number.

She prefers to track the three or six-month moving average because it tends to move out the noise.

Economists also watch the new home sales number to get an insight into housing supply, because tight supply helps support home prices.

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