Later in the US, Crude Oil Inventories, weekly report to measure the commercial crude oil barrels that are held in inventory, 8.5M is due similar to the last week. Sales of new homes likely rose again in August, further evidence of a sustained recovery in housing.
The expectation was that sales of new homes increased to a seasonally adjusted annual rate of 380,000 in August, according to a survey by FactSet. The Commerce Department will release the report at 10 a.m. EDT.
In July, sales of new homes had increased 3.6 percent to an annual rate of 372,000, matching the May level. Both months were the highest since April 2010 when housing sales were being boosted by temporary government tax credits for home buyers.
In the 12 months through July, sales of new homes were up 25 percent. But even with the increases, new home sales remain well below the annual pace of 700,000 that economists consider healthy.
The house market is making a modest but steady recovery, helped by the Federal Reserve's efforts to give the economy a boost through lower interest rates. The Fed earlier this month announced a third round of bond buying in an effort to stimulate the economy and attack unemployment which has been stuck above 8 percent since early 2009.
Sales of previously occupied homes jumped in August to the highest level since May 2010. Builder confidence is at a six-year high and construction of single-family homes rose last month to the fastest annual rate in more than two years. However, even with the gains, home sales and construction remain well below healthy levels.
Home sales have been bolstered by the lowest mortgage rates on record. The average rate on the 30-year fixed mortgage touched a record low of 3.49 percent last week. The rate has been below 4 percent all year. Some economists are forecasting that the Fed's new program to $40 billion a month in mortgage backed securities will push 30-year mortgages down close to 3 percent in coming months.
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