WASHINGTON (8/20/13)--U.S. home sales likely rose in July to the highest level in more than three years, according to economists' forecasts in a Bloomberg survey.
The expected increase was buoyed by growing demand for residential real estate. Combined purchases of new and existing homes probably increased to a 5.64 million annualized pace--the fastest since November 2009, according to the forecasts.
Home values and builder confidence is being bolstered by improving sales--even in the face of higher borrowing costs--and a limited supply of homes, lots and building materials (Bloomberg.com Aug. 18).
In the second half of 2013, economic growth should be strengthened by the fading effects of across-the-board cuts in federal spending, along with gains in auto markets and housing, Bloomberg said.
A slowly improving economy should continue to support an ongoing housing recovery, Roberto Perli, a partner for Cornerstone Macro LP in Washington, D.C., told Bloomberg. Market fundamentals are robust enough to overcome higher mortgage interest rates, he added.