The MReport Webcast: Monday 10/27/2014

Sales of newly built, single-family homes edged up in September, but a sharp downward revision to August's sales figure put a damper on the good news. The Commerce Department and HUD estimate that new home sales were at a seasonally adjusted annual pace of 467,000 in September, according to a joint report from the agencies. September's sales rate marks a minor increase over August's revised rate. New home sales in August, originally reported at an annual pace of 504,000, were brought down dramatically in the government's revised estimate to a rate of 466,000. While the revision might be unwelcome, analysts had expected the government would dial back its initial estimates after it already did so earlier in the year.

New home sales rose last month in two census regions: the Midwest and South, which posted monthly gains of 12.3 percent and 2 percent, respectively. Sales were flat in the Northeast and down 8.9 percent in the West. Annually, sales were up in all regions, climbing nearly 20 percent in the Northeast, South, and West.

A gauge of leading economic indicators in the United States showed solid growth in September, suggesting moderate economic expansion to finish out the year. The Conference Board's Leading Economic Index, a measure of economic developments as an indicator of future trends, increased 0.8 percent last month to 104.4 following a downwardly revised August reading that showed no change. Nine of the ten components contributed to the latest increase, led by improvements in the spread between long and short rates. The index's credit component was also a major contributor as banks gradually loosen credit standards. On the other hand, housing construction contributed little to September's index as permits for new projects proved lackluster for that month.