(Kitco News) - Gold prices are trading at session lows on Wednesday morning as the latest data showed the U.S. housing market improved beyond expectations in March.
New home sales increased 7.4% last month, better than the expected 0.2% increase, after an unrevised 1.8% print in February, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.
New home sales came in at a seasonally adjusted annualized rate of 724,000 in March. The numbers were significantly better than forecasts, as market consensus calls expected sales of 680,000 units. February’s sales were also unrevised at 676,000 units.
On an annual basis, new home sales were up 6.0% from the March 2024 estimate of 683,000.
Looking at home prices, the median sales price for new homes last month was $403,600, and the average sales price was $497,700. As of the end of March, the inventory of houses for sale was 503,000, representing an 8.3-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 rising mortgage rates, a lack of supply has kept housing prices elevated, pricing many potential new home buyers out of the market.
Spot gold fell to a fresh session low immediately after the 10 am EDT release, and last traded at $3,263.29, down 2.49% on the day.
