Existing home sales in the United States saw a 2% reduction in September, according to data released by the National Association of Realtors (NAR) on Thursday. This decline was less severe than the anticipated 3.5% decrease. However, when compared to the same period last year, sales fell by a significant 15.4%, which NAR attributes to higher mortgage rates.
The median sales price of homes slightly increased by 2.8%, reaching $394,300. NAR highlighted issues of limited housing supply and affordability as key challenges in the current market. The organization also criticized the Federal Reserve's decision to raise interest rates amidst weakening inflation and job growth.
Bond market traders, however, disagreed with NAR's stance as Treasury yields hit new highs on Thursday. The yield on the 10-year Treasury note was close to 4.95%, while that of the 30-year bond surpassed 5%. Despite these rising yields not providing substantial support, the U.S. Dollar Index experienced an upward shift following the release of the home sales report.
In other market news, gold prices remained above $1950 due to high demand for safe-haven assets amid ongoing conflict in the Middle East. Meanwhile, the S&P 500 index settled near 4315, influenced by both geopolitical developments and the better-than-expected home sales report.
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