Further housing data to be released this week along with mixed data

Now this modest revival is the major factor behind last week’s FOMC member’s pledge with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year as it still sees that overall labor conditions remain weak and accordingly once again more stronger improvement is needed and also warned about the potential risks from inflation below the central bank`s 2 percent target.

Plus within the past minutes meeting some members indicated that recent information show economy is expanding at a moderate pace. “In the economic forecast prepared by the staff for the June FOMC meeting, the projection for near-term growth of real gross domestic product (GDP) was little changed from the one prepared for the previous meeting.” Minutes said.

As for this coming week more housing data is to be released to show that the housing sector continues on struggling despite of past signs of enhancement with this week the pending sales projected to climb faintly by 0.1 percent from a prior reading of -0.4 percent while that the pending sale for the year ending July it may have rose slightly from a prior reading of 9.1 percent.

Not forgetting that last week a report showed sales of new homes plunged in July by the most in more than three years; the nation’s new home sales plunged gloomily in July to 94 thousand yet existing home sales increased as buyers scrambled to lock in still low mortgage rates in case they move higher, this may point to risk for today`s new home sales report.

As for spending and consumption a report will be revealed and most probably show that the nation’s durable goods orders could have actually gloomily plunged in July by 3.6 percent from a prior reading of 4.2 percent  while that the durables excluding transportation may have climbed slightly by 0.5 percent from 0.0 percent, showing once again unstable durable goods orders.