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U.S. pending home sales unexpectedly fall in November

Published 12/28/2016, 10:04 AM
Updated 12/28/2016, 10:04 AM
© Reuters.  U.S. pending homes sales drop 2.5% in November vs. forecast for 0.5% increase

© Reuters. U.S. pending homes sales drop 2.5% in November vs. forecast for 0.5% increase

Investing.com - Pending home sales in the U.S. unexpectedly fell in November to its second lowest reading this year, dampening optimism over the health of the housing sector, industry data showed on Wednesday.

In a report, the National Association of Realtors (NAR) said its pending home sales index fell by a seasonally adjusted 2.5% last month, missing expectations for an increase of 0.5%.

The pending home sales index decreased to 107.3 from the prior 110.0. That was the lowest level since January.

Year-on-year, pending home sales decreased at an annualized rate of 0.4% in November.

NAR chief economist Larry Yun said that ongoing supply shortages and the surge in mortgage rates took “a small bite” out of the data.

"The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” he said.

"Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract," Yun explained.

After the report, EUR/USD was trading at 1.0394 from around 1.0398 ahead of the release of the data, GBP/USD was at 1.2210 from 1.2217 earlier, while USD/JPY was at 117.59 from 117.67 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was unchanged at 103.43.

Meanwhile, U.S. stock markets traded lower after the open. The Dow 30 dropped 0.08%, the S&P 500 lost 0.38%, while the Nasdaq Composite fell 0.34%.

Elsewhere, in the commodities market, gold futures traded at $1,139.45 a troy ounce, compared to $1,139.35 ahead of the data, while crude oil traded at $53.97 a barrel from $54.15 earlier.

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