(Kitco News) - Gold prices are trading not far from session highs on Thursday morning as the latest data showed the U.S. housing market rebounding beyond expectations in September.
New home sales increased 4.1% last month, far better than the expectation for a -2.2% reading, and compared to the upwardly revised -2.3% print in August, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said on Thursday.
New home sales came in at a seasonally adjusted annualized rate of 738,000 in September. The numbers were higher than forecast, as market consensus calls expected sales of 720,000 units last month. August’s sales were revised downward to a rate of 709,000 from 716,000 units.
Looking at home prices, the median sales price for new homes sold last month was $426,300, and the average sales price was $501,000. As of the end of September, the inventory of houses for sale was 470,000, representing a 7.6-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 after the Federal Reserve aggressively raised interest rates at the fastest pace in 40 years.
Along with high 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 $2,743.32 shortly before the 10 am EST release, and last traded at $2,733.06, up 0.64% on the day.
