US: New Home Sales rise 12.2% in May vs. 0.5% expected

• New Home Sales in the US rose at a much stronger pace than expected in May.
• US Dollar Index recovered from daily lows after this data.

Sales of new single‐family houses rose 12.2% in May to a seasonally adjusted annual rate of 763,000, the data published jointly by the US Census Bureau and the Department of Housing and Urban Development showed on Tuesday.

This reading followed the 3.5% growth (revised from +4.1%) recorded in April and came in much higher than the market expectation for an increase of 0.5%.

Median sale price in the same period stood at $416,300, down 7.6% from $450,700 in May 2022.

Market reaction

The US Dollar Index recovered modestly from daily lows after this data and was last seen losing 0.25% on the day at 102.50.