U.S. home sales rose more than expected in July, boosted by lower mortgage rates and a strong labor market, signs the Federal Reserve’s shift toward lower interest rates was supporting the economy.
A separate report released by the Labor Department on Wednesday suggested the level of employment in the country was slightly lower than previously estimated, taking a bit of the shine off the labor market.
Despite headwinds from a global economic slowdown, the U.S. housing market appears to be strengthening.
The National Association of Realtors said existing home sales rose 2.5% to a seasonally adjusted annual rate of 5.42 million units last month. June’s sales pace was revised slightly higher to 5.29 million units from the previously reported 5.27 million units.
Economists polled by Reuters had forecast existing home sales would rise to a rate of 5.39 million units in July.