DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Spot gold traded near its session lows Thursday morning after fresh data showed the United States housing market performing better than expected in August.

The metal last traded at $4,268.28 per ounce, down 0.45% on the day.

Gold had fallen as low as $4,244.27 per ounce earlier in the morning. The decline came as investors assessed a new home sales report that exceeded the market forecast by a wide margin.

New home sales increased 6.4% last month, according to figures announced by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

Economists had expected a smaller increase of 3.2%.

The reported gain was twice the expected increase. The stronger monthly reading offered evidence of improvement in a housing market that has struggled under the weight of sharply higher interest rates.

Sales of new homes reached a seasonally adjusted annualized rate of 684,000 in August.

That result surpassed the market consensus forecast of 620,000 units.

The previous month’s figure also received a substantial upward revision. July sales were revised to 643,000 units from the 607,000 units initially reported.

Despite the monthly improvement, the annual comparison remained weaker.

New home sales were down 2.0% from the August 2025 rate of 698,000.

The report also provided a detailed look at prices in the new home market.

The median sales price for new homes was $393,700 last month, while the average sales price stood at $478,700.

At the end of August, 483,000 houses were available for sale. That inventory represented an 8.5 month supply based on the current sales rate.

Economists continue to monitor the housing market closely because it is a major contributor to economic activity.

The sector has struggled since the Federal Reserve raised interest rates aggressively at the fastest pace in 40 years.

Jeffrey Roach, Chief Economist at LPL Financial, said softer demand for new homes should push the median price even lower, particularly as mortgage rates rise. His assessment pointed to continued affordability and turnover challenges despite the stronger August sales figures.

"Despite higher mortgage rates and softer demand, prices remain well above pre-pandemic levels," Roach noted.

"As of yesterday, mortgage rates stood at 7.06%, the highest level since 2025, though still below the October 2023 peak of 8.0%."

Roach said conditions in Treasury markets could place additional pressure on borrowing costs.

"Given ongoing pressures in Treasury markets, it would not be surprising to see mortgage rates move higher from here."

Higher mortgage rates are not the only issue limiting movement in the housing market.

Homeowners who already hold existing mortgages may also have less incentive to move, restricting the number of properties changing hands.

"Elevated mortgage rates and the persistent lock-in effect continue to limit overall housing turnover," Roach said.

His comments reflected the continuing divide between August’s stronger new home sales and the broader constraints facing the housing sector.

Roach does not expect housing to provide much support to overall economic expansion soon.

"As a result, housing is unlikely to become a contributor to economic growth in the near term, though stronger activity in the South should support consumer spending and regional economic resilience."

The housing figures delivered an upside surprise, but the sector remains caught between stronger monthly activity and expensive financing.

Gold, meanwhile, remained under pressure near the morning’s lows as the market absorbed the better than expected sales report and Roach’s warning that mortgage rates could climb further.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.