Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

US home re-sales opens Q4 on a weaker foot

US October existing home sales report is not as expected, there was a slight slowdown in the sector, as year end is nearing. However it was completely not expected to perform well. MBA purchase applications retreated by 7.5%m/m in October, after hiking in September. 

The pending home sales also saw a fall. Nevertheless, in-spite of having a drawback in the month of October, it is crucial to observe the trend, which is an improvement. Year over year, the home resales edged up by 3.8% and purchase applications rose by 24%.

"Boosted by ongoing improvements in the labor market, improving household formation rates and rising rents, we expect that the resale market will continue to grind higher in the coming months. Mortgage costs are also expected to remain low", says TD Economics in a research note.

It is broadly anticipated that Federal Reserve will rise its interest rates in December, the future rate path increases are likely to be gradual. The pace of future improvement in sales would also be the same, due to tight home resales inventory.

At low end of the price range, the supply remains inadequate, this also becomes a challenge for the first time buyers.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.