The National Association of Realtors (NAR) announced Thursday that U.S. existing home sales fell 2.4% in June to a seasonally adjusted annual rate of 4.09 million, down from 4.19 million in May. The decline occurred as the Federal Reserve's tightening bias pushed mortgage rates higher, constraining buyer affordability. Gold prices climbed to session highs at $4,134.10 an ounce, up nearly 1.5% on the day, holding support above $4,100 amid the lackluster housing data. NAR Chief Economist Lawrence Yun stated that job gains exceeding half a million since the beginning of the year continue to provide support for the housing market, even as monthly sales activity fluctuates with mortgage rate volatility.
Existing Home Sales Fall 2.4% in June to 4.09 Million Annual Rate
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 2.4% to a seasonally adjusted annual rate of 4.09 million in June, down from 4.19 million in May. Consensus estimates from economists had expected an unchanged reading. The report noted that home sales were up 2.8% compared with the same period last year. Lawrence Yun said the back-and-forth in monthly home sales activity, driven by mild fluctuations in mortgage rates, shows how sensitive home buyers are to affordability conditions.
Gold Prices Rise 1.5% to $4,134.10 Following Housing Data Release
Although the gold market did not see a significant rally in its initial reaction to the disappointing home sales data, prices climbed to session highs. Spot gold last traded at $4,134.10 an ounce, up nearly 1.5% on the day. Gold prices are holding renewed support above $4,100 an ounce.
Median Home Price Reaches Record $440,600 Amid Inventory Constraints
A lack of supply continues to support higher home prices. The median home price hit a record high of $440,600 last month, up 1.8% from a year earlier. Yun stated that affordability is better than a year ago because wage growth is outpacing home price growth. He added that progress on long-term housing affordability could be hampered if inventory growth continues to stall, and that it is critical to introduce more supply to the market to widen the opportunity for homeownership. National inventories totaled 1.56 million units for sale last month, representing a 4.6-month supply.
FAQ
What caused U.S. existing home sales to fall in June?
Existing home sales fell 2.4% in June to 4.09 million as the Federal Reserve's tightening bias pushed mortgage rates higher, making homes less affordable for buyers.
How did gold prices react to the home sales data?
Gold prices climbed to session highs at $4,134.10 an ounce, up nearly 1.5% on the day, holding support above $4,100 following the release of the disappointing home sales figures.
What is the current median home price in the U.S.?
The median home price reached a record high of $440,600 last month, up 1.8% from a year earlier, driven by limited inventory of 1.56 million units representing a 4.6-month supply.
