Existing Home Sales fell by 2%, compared to analyst expectations of -3.5%.
The National Association of Realtors argues that Fed should not raise rates again.
Markets do not show a strong reaction to the report as traders remain focused on geopolitical developments.
On October 19, the National Association of Realtors released Existing Home Sales report for September. The report indicated that Existing Home Sales declined by 2% on a month-over-month basis, compared to analyst consensus of -3.5%.
On a year-over-year basis, Existing Home Sales declined by 15.4%, which is not surprising given the current mortgage rates. The median existing home sales prices increased by 2.8% from one year ago to $394,300.
The National Association of Realtors commented: “As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales. The Federal Reserve simply cannot keep raising interest rates in light of softening inflation and weakening job gains.”
Bond market traders do not agree with NAR as Treasury yields hit new highs today. The yield of 10-year Treasuries made an attempt to settle above 4.95%, while the yield of 30-year Treasuries settled above 5.00%.
U.S. Dollar Index moved away from recent lows after the release of the Existing Home Sales report. Interestingly, rising Treasury yields did not provide material support to the American currency today.
Gold continues to trade above the $1950 level amid rising demand for safe-haven assets. Gold traders will likely stay focused on the conflict in the Middle East, so the report should not have a big impact on gold markets.
SP500 settled near the 4315 level. The better-than-expected report may provide some support to stocks, but geopolitical developments will likely remain key catalysts for the market.