(Kitco News) - The U.S. housing market continue to find some stable footing as new home sales rose more than expected in October. This is the third consecutive month of gains for new home sales.
New home sales rose to seasonally adjusted annualized rate of 632,000 homes last month up 7.5%, the U.S. Commerce Department said on Wednesday. September’s sales were revised down to rate of 588,000 units.
The sales data significantly beat as economists were looking for a pace of around 570,000 units.
The gold market is not seeing much reaction to the latest housing sales data. December gold futures last traded at $1,740.70 an ounce, roughly flat on the day.
According to some economists, the rise in home sales will help to relieve some fears that the U.S. economy is headed for a hard recession. The housing sector is a contributor to the nation’s Gross Domestic Product.
The housing market has dropped significantly this year as the Federal Reserve has aggressively raised interest rates, driving mortgages higher. At the same time, low inventories has kept prices elevated.
The report said that the e median sales price of new houses sold in October 2022 was $493,000. At the same time, the average sales price was $544,000.
Looking at supply levels, the report said that the inventory of new homes for sale was 470,000, representing a 8.9-month supply.
