Existing home sales rose 1.5 percent in October to a 5.26 million rate from an upwardly-revised 5.18 million unit pace in September. In typical cyclical fashion, listed inventories fell 2.6 percent to 2.22 million units.
Existing Home Sales Rise for Second-Straight Month
- Sales activity in the resale market continued to strengthen in October, increasing to its highest level this year. Distressed sales remained low in October, garnering just 9 percent of total sales. Despite fewer bargain homes in the market, all-cash transactions rose 3 percentage points to 27 percent in October. The share of first-time home buyers remained stuck at 29 percent for the fourth month in a row.
Mortgage Purchase Applications Firming
- Mortgage applications for the purchase of a home rose for the second-straight week in November following a string of weak readings in mid- to late October. For the week ending November 14, purchase applications hit its highest level since June. Normalization in lending standards and further strengthening in the labor market will be key drivers to an even more robust housing market in 2015.