The U.S. housing market is seeing the effects of lower mortgage rates. Existing home sales surpassed expectations in August by rising 1.3 percent. Although the gain was slightly modest by historical standards, resales have now risen in back-to-back months for the first time since 2017.
Furthermore, sales came in solid in every region except the West in August. The latest housing data have been encouraging; however, relates are expected to have dropped a bit in September, noted Wells Fargo in a research report. The pending home sales index dropped 2.5 percent in July and came in at just 1.6 percent in August.
“That said, mortgage rates continue to trend downward and averaged 3.6 percent during September. Through the monthly volatility, improved buying conditions should continue to entice buyers back into the market, and we expect existing home sales to trend higher in coming months”, added Wells Fargo.
