Existing Home Sales Fell 0.7% In August

Key Insights

• Existing Home Sales missed analyst estimates. 
• The median Existing Home Sales price remains above the $400,000 level. 
• SP500 settled near session lows as traders remain focused on the hawkish Fed.

On September 21, the National Association of Realtors released Existing Home Sales report for August. The report indicated that Existing Home Sales declined by 0.7% on a month-over-month basis. Analysts expected that Existing Home Sales would grow by 1.5%.

On a year-over-year basis, Existing Home Sales were down by 15.3%, which is not surprising in the rising interest rate environment. The median Existing Home Sales price increased by 3.9% from one year ago to $407,100.

The National Association of Realtors commented: “Home prices continue to march higher despite lower home sales. Supply needs to essentially double to moderate home price gains.”

U.S. Dollar Index remained stuck near the 105.60 level after the release of Existing Home Sales report. Traders remain focused on the recent comments from Fed Chair Powell and prepare for a potential rate hike at the next Fed meeting.

Gold settled near the $1920 level. It remains to be seen whether the report will provide any support to gold markets.

SP500 tests session lows near the 4360 level. The hawkish Fed is the main driver for the current pullback. While Existing Home Sales declined, there is no sign of major problems in the housing market. Thus, Fed will stay focused on its fight against inflation, which is bearish for stocks.

For a look at all of today’s economic events, check out our economic calendar.