(Kitco News) - Gold prices rose to fresh session highs on Friday morning after the latest data showed the U.S. housing market deteriorating beyond all expectations in November.
New home sales fell a staggering -12.2% last month against expectations for a 1.2% increase, and after a revised -4.0% decline in October, coming in at a seasonally adjusted annualized rate of 590,000 homes, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said on Friday.
The numbers were far worse than forecast, as market consensus calls expected sales to come in at 685,000 units in November. October’s sales were also revised downward to a rate of 672,000 from 679,000 units.
On an annual basis, new home sales were up 1.4% from the November 2022 estimate of 582,000.
Looking at home prices, the median sales price for new homes sold last month was $434,700, and the average sales price was $488,900. As of the end of November, the inventory of houses for sale was 451,000, representing a 9.2-month supply at the current sales rate.
Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled as the Federal Reserve has aggressively raised interest rates at the fastest pace in 40 years.
Along with rising mortgage rates, a lack of supply has kept housing prices elevated, pricing many potential new home buyers out of the market.
Spot gold rose to a fresh session high of $2,070.27 shortly after the 10 am EST release, and is up 1.15% on the day.
