Investing.com – U.S. existing home sales fell more than expected in December, although they still registered their best year in a decade, according to a report released on Tuesday by the National Association of Realtors (NAR).
The industry data showed that home resales fell 2.8% in December to a seasonally adjusted 5.49 million units from 5.65 million units in the previous month. November’s data was revised from an initial reading of 5.61 million units.
The consensus forecast was for a 1.1% decrease to 5.52 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.
"Existing-home sales closed out 2016 as the best year in a decade, even as sales declined in December as the result of ongoing affordability tensions and historically low supply levels", the NAR said in the release.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, finished 2016 at 5.45 million sales and surpassed 2015 (5.25 million) as the highest since 2006 (6.48 million), the report noted.
"Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market," NAR chief economist Lawrence Yun explained said.
"However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December," he explained.
After the report, EUR/USD was trading at 1.0766 from around 1.0759 ahead of the release of the data, GBP/USD was at 1.2483 from 1.2481 earlier, while USD/JPY traded at 112.99 compared to 113.10 before the release.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 100.00, compared to 100.05 ahead of the report.
Meanwhile, U.S. stock markets were slightly higher after the open. The Dow Jones Industrial Average inched up 6 points, or 0.03%, the S&P 500 edged forward 2 points, or 0.09% , and the tech-heavy Nasdaq Composite traded up 7 points, or 0.12%.
Elsewhere, in the commodities market, gold futures traded at $1,216.45 a troy ounce, compared to $1,216.45 ahead of the data, while U.S. crude oil was unchanged at $53.24.