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U.S. existing home sales plunge 10.5% to 19-month low in November

Published 12/22/2015, 10:03 AM
U.S. existing home sales plunge 10.5% in November
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Investing.com - U.S. existing home sales fell sharply in November to hit the lowest level in 19 months, dampening optimism over the health of the housing market, industry data showed on Tuesday.

In a report, the National Association of Realtors said that existing home sales tumbled 10.5% to a seasonally adjusted 4.76 million units last month from 5.32 million in October. Analysts had expected existing home sales to rise to 5.35 million units in November.

All four major regions saw sales declines in November.

Lawrence Yun, NAR chief economist, says multiple factors led to November's sales decline, but the primary reason could be an anomaly as the industry adjusts to the new Know Before You Owe rule.

"Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," he said.

EUR/USD was trading at 1.0968 from around 1.0966 ahead of the release of the data, GBP/USD was at 1.4840 from 1.4841 earlier, while USD/JPY was at 120.93 from 120.91 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.11, compared to 98.14 ahead of the report.

Meanwhile, U.S. stock markets were modestly higher after the open. The Dow 30 inched up 28 points, or 0.17%, the S&P 500 tacked on 2 points, or 0.05%, while the Nasdaq Composite advanced 10 points, or 0.2%.

Elsewhere, in the commodities market, gold futures traded at $1,075.40 a troy ounce, compared to $1,076.00 ahead of the data, while crude oil traded at $36.00 a barrel from $36.01 earlier.

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