The National Association of Home Builders commented: “High mortgage rates that approached 8% earlier this month continue to hammer builder confidence, but recent economic data suggest housing conditions may improve in the coming months.”
Today, traders also had a chance to take a look at the Industrial Production report for October, which showed that Industrial Production declined by 0.6% on a month-over-month basis. Analysts expected that Industrial Production would drop by 0.3%, so the report missed analyst estimates.
U.S. Dollar Index tested new lows after the release of the NAHB Housing Market Index report. Treasury yields are moving lower, which is bearish for the American currency.
Gold climbed above the $1980 level as traders focused on weak dollar and falling Treasury yields. Traders bet on a more dovish Fed, which is bullish for gold markets.
SP500 settled near the 4510 level. The bullish sentiment remains strong as traders believe that Fed will start cutting rates in the first half of the next year.
For a look at all of today’s economic events, check out our economic calendar.