Existing Home Sales Surge To Feb 2007 Highs Before Yuuge Spike In Mortgage Rates
October saw exisitng home sales (SAAR) surge to 5.60mm (handily better than the 5.44mm expectation). These are deals essentially done in August and September – weeks before mortgage rates exploded higher – and with median home prices hitting new highs as the cost of funding spikes, it is hard to se how this is sustainable.
What happens next?
The 2013 taper tantrum spike in mortgage rates created a 10% plunge in existing home sales in the following 4 months.
Lawrence Yun, NAR chief economist, says the wave of sales activity the last two months represents a convincing autumn revival for the housing market.
This post was published at Zero Hedge on Nov 22, 2016.