(Kitco News) - Spot gold is coming off its session high near $3,390 per ounce after the latest data showed the U.S. housing market performing beyond expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 0.8% to a seasonally adjusted annual rate of 4.03 million in May, the National Association of Realtors (NAR) announced on Monday.
The data was significantly better than expected, as the forecast of economists called for a -1.3% drop to 3.96 million. April’s total was unrevised at 4.00 million units. Year-over-year, sales were down 0.7% from May 2024.
Spot gold came off its session high following the 10 am EDT release, and last traded at $3,372.51 for a gain of 0.11% on the day at the time of writing.
"The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market," said NAR Chief Economist Lawrence Yun. "Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth."
Total housing inventory stood at 1.45 million units at the end of May, up 6.2% from April to 1.54 million units and 20.3% from the May 2024 level of 1.28 million. Unsold inventory now sits at a 4.6-month supply at the current sales pace, up from 4.4 months in April and 3.8 months in May of 2024.
The median existing-home price for all housing types in May was $422,800, up 1.3% from $417,200 one year ago. This is a record high for the month of May, and the 23rd consecutive month of year-over-year price increases.
“If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs," Yun added.
