The U.S. data show sales of previously owned homes as well as a general guage of leading indicators both exceeded expectations and suggest the economic recovery is on solid footing heading into 2011, according to Bloomberg. On Thursday, the National Association of Realtors reported that purchases of existing homes increased 12% in December from the previous month. Lawrence Yun, the NAR chief economist, said increasing mortgage rates “provided some urgency” for home buyers “to make the decision earlier.” Purchases for 2010 as a whole fell to 4.91 million, which is the lowest level since 1997.
Meanwhile, the Conference Board found that its index of leading economic indicators added 1%, boosting the outlook for the next three to six months, and the gain was driven by an increase in building permits during December. The leading index’s gain was the sixth in a row, and with the economic recovery showing signs of sustaining momentum, Carl Riccadonna of Deutsche Bank says the latest reading suggests the economy could accelerate to gross domestic product “growth well north of 3%.”