(Kitco News) - Gold prices are trading just off session highs on Tuesday morning after the latest data showed the U.S. housing market improved beyond expectations in September, and held steady in October.
New home sales rose 3.8% in September, better than the expected -14.8% decrease, and following an unrevised increase of 20.8% in August, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.
New home sales also fell 0.1% in October against expectations for a 1.4% rise. The two months were released at the same time as the Federal government catches up on data following the U.S. government shutdown last fall.
New home sales came in at a seasonally adjusted annualized rate of 738,000 in September. The numbers were better than forecasts, as the market consensus expected sales of 710,000 units. August’s sales were unrevised at 800,000 units.
October new home sales totaled 737,000 against an expectation of 700,000 units. On an annual basis, new home sales were up 18.7% from the 621,000 seen in October 2024.
Looking at home prices, the median sales price for new homes in October was $392,300, and the average sales price was $498,000. As of the end of October, the inventory of houses for sale was 488,000, representing a 7.9-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 in recent years 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 rose to a session high of $4,634.89 per ounce just before the 10 am EST release, and last traded at $4,622.88, up 0.55% on the day.
