Existing Home Sales Fell 3.3% In June, Missing Analyst Estimates

Key Insights

• Existing Home Sales declined by 3.3% in June. 
• The median Existing Home Sales price was $410,200. 
• U.S. Dollar Index tested session highs after the release of the report. 

On July 20, the National Association of Realtors (NAR) released Existing Home Sales report for June. The report indicated that Existing Home Sales declined by 3.3% month-over-month in June, compared to analyst consensus of -1.2%.

At $410,200, the median Existing Home Sales price for June was the second-highest price recorded since Janury 1999, when NAR began tracking data.

The inventory of unsold existing homes was unchanged from the previous month at 1.08 million at the end of June.

NAR commented: “Fewer Americans were on the move despite the usual life-changing circumstances. The pent-up demand will surely be realized soon, especially if mortgage rates and inventory move favorably.”

NAR believes that the current housing inventory is not sufficient and that the market can easily absorb a doubling of inventory. However, lower interest rates are needed to boost demand.

U.S. Dollar Index tested session highs after the release of the Existing Home Sales report. Treasury yields continue to rebound, providing additional support to the American currency.

Gold pulled back towards the $1970 level as traders focused on stronger dollar and rising Treasury yields. The Existing Home Sales report put additional pressure on gold markets.

SP500 declined towards the 4550 level. While higher Treasury yields and stronger dollar are bearish for stocks, profit-taking is the main catalyst for the current pullback.

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