Existing home sales unexpectedly rise

Existing home sales unexpectedly rose.

Existing home sales rose 1.1% to a seasonally adjusted annual rate of 5.57 million in June, according to the National Association of Realtors.

Sales are now up 3.0% from June 2015 (5.41 million), and remain at their highest annual pace since February 2007 (5.79 million).

Economists were expecting sales to fall 0.9% to a seasonally adjusted annual rate of 5.53 million, according to the Bloomberg consensus.

"Boosted by a greater share of sales to first-time buyers not seen in nearly four years, existing-home sales maintained their upward trajectory in June and increased for the fourth consecutive month," the report noted.

"Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances," said Lawrence Yun, NAR chief economist. "Sustained job growth as well as this year's descent in mortgage rates is undoubtedly driving the appetite for home purchases."

"Looking ahead, it's unclear if this current sales pace can further accelerate as record high stock prices, near-record low mortgage rates and solid job gains face off against a dearth of homes available for sale and lofty home prices that keep advancing," he added.