Investing.com – U.S. existing home sales fell more than expected in February, dampening optimism over the health of the housing market, according to a report released on Wednesday by the National Association of Realtors (NAR).
The industry data showed that home resales declined 3.7% in February to a seasonally adjusted 5.48 million units from 5.69 million units in the previous month.
The consensus forecast was for a 2.0% decrease from January’s reading to 5.57 million units.
The data helps to gauge the strength of the U.S. housing market and is considered to be a key indicator of overall economic strength.
"After starting the year at the fastest pace in almost a decade, existing-home sales slid in February but remained above year ago levels both nationally and in all major regions," the NAR noted in the report.
Despite last month's decline, February's sales pace is still 5.4% above a year ago, the realtors association explained.
"Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that's pushing up price growth and pressuring the budgets of prospective buyers," NAR chief economist Lawrence Yun said.
"Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market," he explained.
After the report, EUR/USD was trading at 1.0803 from around 1.0794 ahead of the release of the data, GBP/USD was at 1.2439 from 1.2436 earlier, while USD/JPY traded at 111.00 compared to 111.10 before the release.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.53, compared to 99.59 ahead of the report.
Meanwhile, U.S. stock markets were mixed after the open. The Dow Jones Industrial Average fell 65 points, or 0.31%, the S&P 500 dropped points, or 0.17%, while the Nasdaq Composite edged forward 4 points, or 0.06%.
Elsewhere, in the commodities market, gold futures traded at $1,249.05 a troy ounce, compared to $1,247.65 ahead of the data, while U.S. crude oil changed hands at $47.63, compared to $47.66 earlier.