New Home Sales

Although not always consistent, the housing market can be an important indicator of economic strength as it ultimately relates to forex trading.

The US Census Bureau releases a monthly report that gives the numbers on New Home Sales, also called New Residential Sales, expressed in units of thousands of homes and broken down by region.

Other data provided includes the sale price, the construction stage of the house, and month-to-month comparisons. All of these represent how the economy is doing and inform the forex broker how to invest.

FX Trading Significance

But the report isn’t the ideal indicator for economic healthiness. It is often a lagging sign of mortgage rates, and does not properly reflect the affluence of the US.

The median sales numbers are typically the best clues to figuring out currency inflation in the housing market, or in other words, the best data relevant to this report for FX trading.

Monthly fluctuations in new home sales are not believed to be a significant indicator of the market, and rarely trigger much activity in response to its release. A much better indicator of shifts in the housing market is the Existing Home Sales report, released earlier in the month and providing more widely-used data.

Nonetheless, both of these are worth investigating for anyone involved in forex trading before making an investment with a forex broker.

For more basic forex trading info, check out some of our additional resource pages. You’ll find additional general information on common forex trading economic indicators such as the Nonfarm Payroll Employment report, the PCE Price Index and the Personal Income and Spending report.