2016.07.2210:19:00UTC+00Us Existing Home Sales See Stronger Than expected Development in June

According to a report released on Thursday by the National Association of Realtors, U.S. existing home sales beat expectations. The industry data showed that home re-sales increased 1.1 percent in June to a seasonally adjusted 5.57 million units from the 5.51 million units in May that was revised from the initial read of 5.53 million. The consensus forecast was for a 0.5 percent decline to 5.48 million units.

Low mortgage interest rates likely drew buyers into the market, a positive sign for the economy. U.S. mortgage rates fell in June to their lowest levels since 2013 on bets the Federal Reserve would be cautious about raising short-term rates. Mortgage rates have declined further since Brexit vote.

Thursday's data follows upbeat housing starts which showed a steady but tepid recovery, rising 4.8 percent m/m to a seasonally adjusted annual rate of 1.189 million in June. New applications for building permits rose 1.5 percent to 1.153 million, from a downwardly revised May figure.

Data bolstered optimism over the health of U.S. housing market. Today's report adds to the series of solid U.S. economic data releases that have revived hopes of the Federal Reserve raising interest rates this year. New home sales data scheduled to be released on Tuesday, July 26 will be watched.

"This indicator is expected to improve further in the coming months as traditional purchasers become active in the market," notes TD Economics in a research note.