US existing home sales unexpectedly rise in June

Sales of existing US homes unexpectedly rose in June, according to data from the National Association of Realtors.

Sales were up 1.1% to a seasonally-adjusted annual rate of 5.57m from a downwardly revised 5.51m the month before. Economists had been expecting a 0.7% decline.

On the year, sales were up 3% and still at their highest annual pace since February 2007.

Meanwhile, the median price for a home rose 4.8% from last year to $247,700.

Lawrence Yun, NAR chief economist, said: "Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances.

"Sustained job growth as well as this year's descent in mortgage rates is undoubtedly driving the appetite for home purchases."

Pantheon Macroeconomics said the figures were solid, but it's hard to see significant further gains until mortgage demand rises.