Treasuries rose for the first time in five days before an industry report that economists said will show sales of existing homes fell in September, highlighting an uneven rebound in the U.S. housing market.
U.S. existing home sales dropped 1.7 percent in September from the previous month, according to the median forecast of 78 economists surveyed by Bloomberg News before the National Association of Realtors reports the figure at 10 a.m. in New York. They rose 7.8 percent in August. Housing starts climbed 15 percent in September from August to a four-year high, government data showed Oct. 17.
Sales of previously occupied U.S. homes likely slipped last month from a two-year high reached in August, the latest sign that the recovery in housing is slow and uneven.
Economists forecast that sales dropped 1.7 percent in September to a seasonally adjusted annual rate of 4.74 million units, according to a survey by FactSet. The National Association of Realtors will release the report at 10 a.m. Eastern time Friday.
In August, sales of previously occupied homes jumped 7.8 percent to 4.82 million, the highest since May 2010, when sales were aided by a federal home-buying tax credit.
But the number of contracts signed to buy homes fell that month, the Realtors’ group said. Decreases in signed contracts are usually followed by lower sales one or two months later.
Existing home sales have also been held back by a low supply of homes available for sale. There were 2.47 million homes available in August. It would take just over six months to exhaust that supply at the current sales pace. That’s the typical pace in a healthy market.