The Commerce Department’s latest figures comfortably surpassed economist forecasts, which had anticipated a more modest recovery to 1.31 million units following May’s six-year low. While the monthly jump represents a 3.5% increase compared to the same period last year, the broader construction landscape remains fragile.

Building permits, a key leading indicator for future activity, suggest the current momentum may be short-lived. These permits fell 3% to 1.37 million units last month, missing market expectations and marking a 2.4% decline year-over-year. Investors appear unmoved by the mixed housing data, with spot gold trading at $3,966.60 an ounce—a 0.22% drop for the day—after failing to hold support levels at $4,000 on Thursday.