Rise In U.S. Existing Home Sales Has Little Impact On Gold
(Kitco News) - U.S. economic data continue to have little impact on gold as prices hold above $1,400 an ounce following stronger than expected existing home sales for May, according to the latest report from the National Association of Realtors (NAR).
Existing home sales increased 2.5% last month to a seasonally adjusted and annualized rate of 5.34 million units, compared to April’s annualized rate of 5.19 million homes, the association said on Monday. Economists were expecting to see a sales rate of 5.29 million homes.
Despite the monthly increase, home sales are still down 1.1% from last year, the association said. The housing sector, with rising prices has struggled to attract new home buyers. However, Lawrence Yun, NAR’s chief economist, said that falling mortgage rates is helping to reverse the slumping market.
Yun said the rise in sales shows that consumers are eager to take advantage of the favorable conditions. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
Gold prices were largely unchanged after the data was released, with August Comex gold futures last seen trading at $1,401.4, up 0.31% on the day.
Looking at housing prices, the NAR said that the median house price last month was $277,700, a historic high and up 4.8% from last year.
Yun noted that falling supply along with growing demand is pushing home prices higher. The association said that the total inventories of homes for sale last month was 1.92 million, representing a 4.3-month supply at the current sales pace.