Investing.com - Pending home sales in the U.S. rose more than twice as much as expected in June, bolstering optimism over the health of the housing sector, industry data showed on Monday.
In a report, the National Association of Realtors (NAR) said its pending home sales index increased by a seasonally adjusted 1.5% last month, compared to expectations for a gain of 0.7%.
The reading on the index itself increased to 110.2 in June from the prior 108.6 (revised from an initial reading of 108.5).
“The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," NAR chief economist Larry Yun said.
“Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria,” he added.
Yun highlighted that low supply was the ongoing issue holding back activity.
“Housing inventory declined last month and is a staggering 7.1% lower than a year ago,” he explained.
Following the report, EUR/USD was trading at 1.1751 from around 1.1748 ahead of the release of the data, GBP/USD was at 1.3126 compared to 1.3120 previously, while USD/JPY was at 110.52 from 110.53 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.23, compared to 93.24 ahead of the report.
Meanwhile, U.S. stock markets traded mixed after the open. The Dow 30 rose 62 points, or 0.28%, the S&P 500 inched up less than a point, or 0.01%, while the Nasdaq Composite traded down 10 points or 0.14%.
Elsewhere, in the commodities market, gold futures traded at $1,267.72 a troy ounce, compared to $1,266.94 ahead of the data, while crude oil traded at $49.42 a barrel from $49.27 earlier.