(Kitco News) - Spot gold is dropping back into the red on the session this morning after the latest data showed the U.S. housing market pulling back but still beating expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, fell -1.7% to a seasonally adjusted annual rate of 4.06 million in July, the National Association of Realtors (NAR) announced on Tuesday.
The data was still better than expected, as the forecast of economists called for a decrease to 4.04 million. June’s total was also revised up to 4.13 million from 4.09 million units.
Spot gold slid back into negative territory in the minutes following the 10 am ET release, and last traded at $4,385.57 for a loss of 0.11% on the day at the time of writing.
Month-over-month sales increased in the Northeast, held steady in the West, and declined in the Midwest and South. Year-over-year sales rose in the Midwest and West and were flat in the Northeast and South.
“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,” said NAR Chief Economist Lawrence Yun. “Year-to-date sales are up 2.4% and there’s no doubt that the housing market would be thriving if average mortgage rates were to return near 6%.”
“Though the national data shows stabilization, there are notable local market variations,” Yun said. “In smaller cities, and particularly in the Midwest, an annual household income of $60,000 would be sufficient to buy a median-priced home.”
