Backward-looking and often sizably adjusted after the fact, the government’s monthly New Home Sales report is typically not a market mover.
The data, however, continues to paint a different picture than the one being espoused by the hawkish Fed under its new Chairman Kevin Warsh.
According to the Census Bureau, new home sales in May fell to an annualized pace of just 580,000 from 626,000 in April. Economist forecasts had been for a rise to 640,000.
One year ago, May home sales were 622,000.
Already falling today as gold tumbled below $4,000 per ounce and oil slid below $70 per barrel, interest rates ticked a bit lower following the home sales data.
The 10-year U.S. Treasury yield is lower by 8 basis points to 4.41%, the same level it was at prior to the Fed’s surprisingly hawkish turn last week. The two-year yield is down five basis points to 4.15%.
What’s it mean for crypto? That’s hard to say, as nothing seems able to pull the sector out of its bear market. Should expected Fed rate hikes not come to pass, though, it could prove to be a tailwind for prices.
Bitcoin (BTC), for now, is at its session low of 61,100, down 2% over the past 24 hours. U.S. stocks are posting very small gains early in their trading day, the S&P 500 up 0.15%.