(Kitco News) - The U.S. housing market continues to see depressed activity; however the market could be close to stabilizing as the number of consumers starting the home buying process falls less than expected, according to the latest report from the National Association of Realtors (NAR).
Wednesday, the association said that its Pending Home Sales Index fell to 89.8 in July, down 1% from June. However, the data came in better than expected; economists were expecting to see a 2.6% decline.
"In terms of the current housing cycle, we may be at or close to the bottom in contract signings," said NAR Chief Economist Lawrence Yun. "This month's very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at lower price points is hindering transaction activity."
The gold market is not seeing much reaction to the latest housing market data as prices continue to hold critical support above $1,750 an ounce. December gold futures last traded at $1,757.80 an ounce, down 0.19% on the day.
The report said that the index is down nearly 20% from July 2021 levels. Despite the better-than-expected drop, the index is still at its lowest level since 2020.
