The measure of contracts signed on existing homes, Pending Home Sales, gained 1.5% in September after a 1.4% increase in August. So expect a boost in Existing Home Sales for October.
The Fed met and, to no one’s surprise, dropped the short-term Funds Rate a quarter percent. This does not yet affect long-term mortgage rates, although it does help perpetuate today’s low-rate lending environment.
Low rates pushed home ownership to 64.8% in Q3, and should send mortgage originations to the highest level in 12 years. Factoring in consumer house buying power, First American says home prices are 41% below their 2006 peak.