U.S. September Existing Home Sales - Starting to pick up as mortgage rates fall
September existing home sales with a 1.5% increase are spot on consensus expectations, and while the rise is modest the level is the highest since February, supported by recent declines in mortgage rates.
The gain follows a more impressive rise in August new home sales (its September release has been delayed) as well as a rise in August pending home sales and positive signals from the MBA and NAHB surveys, though the latter picked up only in October. That suggests the August existing home sales gain can extend further in October.
August detail shows gains in there out of four regions, the strongest being the West at 5.5% though at 0.0% yr/yr the West still lags the 4.1% national gains. The one region to decline was the Midwest which reversed a 2.1% August increase.
The median price fell by 1.7% on the month but this is not seasonally adjusted. Yr/yr growth of 2.1% is marginally up from August’s 2.0% and the recent 2-year low of 1.0% seen in July.
