Uncertainty in the market prompted low interest rates in October. The partial government shutdown, rising unemployment, and diminishing consumer confidence encouraged the Federal Reserve to maintain its bond purchases. Low mortgage interest rates likely stimulated sales in October, tempering the seasonal decline. While the pace of sales declined, prices did rise slightly. This combination could be a result of restricted inventory.
We can expect the usual seasonal decline in sales to continue through November as interest rates have risen slightly this month and folks are turning their attention to the holidays.
Analysis and commentary by Ted Koebel, Senior Research Associate & Mel Jones, Research Associate, of the Virginia Center for Housing Research at Virginia Tech.
Click here for full October 2013 home sales report