Daily Market Watch

 US Existing Home Sales and Market Impact

The United States Existing Home Sales report measures how many houses, apartments (condos), and co-ops that were previously owned were sold in the past month. This is a vital sign of the health of the US housing market and the overall economy, as buying a house is the largest purchase many people make. When this number is high, it shows that buyers are confident and have the money to spend, and it indicates a strong economy. The key factors traders watch are the Sales Volume (the main number of homes sold), the Median Home Price (how fast prices are rising), and the Housing Supply (how many homes are available).

The results of this report heavily influence the US Dollar (USD) value. If the Actual sales volume is stronger than expected (more houses sold), it signals a robust economy and ongoing price increases (inflation), which causes traders to expect the US central bank (the Fed) to keep interest rates high. High rates make the USD stronger (it rises). If the Actual sales volume is weaker than expected, it signals a slowing economy. This suggests the Fed might cut interest rates to encourage buying. Expectations of lower rates generally make the USD weaker (it falls). The recent 1.5% rise, though slightly less than expected, suggests the market is slowly recovering, mainly due to lower mortgage costs.