The US Dollar is little changed against its peers after the latest US house price data came in softer than expected.
According to the Federal Housing Agency, house prices rose 7.3% on a year-by-year basis through May as buyers compete for an increasingly small supply of listed properties. On a month by month basis prices edged up by 0.7% in May. Economists had been expecting a gain of 0.8%.
“The U.S. housing market as a whole is currently not experiencing a bubble, but in many places it sure must feel like one,” Zillow Senior Economist Svenja Gudell said in a statement. “Homeowners are feeling a sense of whiplash after years of depreciation.”
The limited supply of available property and higher mortgage rates is one of the reasons why house prices have continuously improved and restraining purchases. The Dollar remains softer against its peers after Monday’s data release that showed that sales of existing homes slipped by 1.2% in June. The number of available properties on the market is at its lowest level for any June since 2001.
Economists are concerned that the higher mortgage rates could have a negative impact on the USA’s housing recovery.
Wednesday will see the release of the latest New home sales data being released and is expected to show a decline of those sales also. As a result the US Dollar looks set to soften further as the week progresses as speculation that the Federal Reserve will opt to maintain its monetary easing programme strengthens.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6507
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7579
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0801
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.5222
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0331
(Correct as of 15:15 pm GMT)
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