Existing Home Sales Declined 2.2% In July

Key Insights

• Existing Home Sales decreased by 2.2% in July, missing analyst estimates. 
• Median existing-home sales price increased by 1.9% on a year-over-year basis. 
• Rising mortgage rates limit buyers’ activity.

On August 22, the National Association of Realtors released Existing Home Sales report for July. The report indicated that Existing Home Sales declined by 2.2% on a month-over-month basis, compared to analyst consensus of -0.5%.

According to the report, the median existing-home sales price rose 1.9% from one year ago to $406,700. The inventory of unsold existing homes grew by 3.7% from the previous month.

The National Association of Realtors commented: “Two factors are driving current sales activity – inventory availability and mortgage rates. Unfortunately, both have been unfavorable to buyers.”

Freddie Mac data shows that the rate on the 30-year fixed rate mortgage has recently moved above the 7.00% level, so high interest rates will continue to put pressure on the activity in the housing market.

FedWatch Tool indicates that there is a 84.5% probability that Fed will leave the federal funds rate unchanged at the next meeting in September. However, Treasury yields keep moving higher as bond traders worry that Fed may decide to raise rates one more time this year.

U.S. Dollar Index remained near session highs after the release of the Existing Home Sales report. Traders focus on rising Treasury yields, which is bullish for the American currency.

Gold settled near the $1895 level as stronger dollar and rising Treasury yields put pressure on precious metals markets.

SP500 rebounded from session lows. Traders hope that the disappointing housing data will make the Fed more dovish.

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