US: Home buying picks up further in October - Wells Fargo

According to analysts from Wells Fargo, mild fall weather and low interest rates brought out buyers that pushed home sales further to the upside in October. They noted that inventories remain tight and continue to constrain sales.

Key Quotes: 

“After jumping 3.6 percent in September, existing homes sales rose an additional 2 percent in October and are now running at their strongest pace since February 2007. Fears of higher mortgage rates may have pulled some sales forward. According to Freddie Mac, a 30-yr fixed mortgage commitment rate was 3.47 percent in October but is closer to 4 percent today.”

“Single-family home sales rose 2.3 percent in October, while sales of condos and co-ops were unchanged. The split continues a recent trend that reflects some cooling in higher-priced major markets like New York and Miami. Home sales continued to be constrained by unusually tight inventories.”