Investing.com - Pending home sales in the U.S. unexpectedly declined in July, dampening optimism over the health of the housing sector, industry data showed on Thursday.
In a report, the National Association of Realtors (NAR) said its pending home sales index decreased by a seasonally adjusted 0.8% last month, compared to expectations for a gain of 0.5%.
The reading on the index itself decreased to 109.1 in July from the prior 110.0 (revised from an initial reading of 110.2).
Year-on-year, pending home sales fell at an annualized rate of 1.3% in July.
NAR chief economist Larry Yun blamed the decline on the staggering inventory woes throughout the country continue to stall contract activity.
“With the exception of a minimal gain in the West, pending sales were weaker in most areas in July as house hunters saw limited options for sale and highly competitive market conditions,” Yun said.
Following the report, EUR/USD was trading at 1.1852 from around 1.1857 ahead of the release of the data, GBP/USD was at 1.2870 compared to 1.2880 previously, while USD/JPY was at 110.40 from 110.35 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.03, compared to 93.00 ahead of the report.
Meanwhile, U.S. stock markets traded higher after the open. The Dow 30 gained 0.41%, the S&P 500 rose 0.47%, while the Nasdaq Composite advanced 0.57%.
Elsewhere, in the commodities market, gold futures traded at $1,316.80 a troy ounce, compared to $1,317.10 ahead of the data, while crude oil traded at $47.16 a barrel from $46.59 earlier.