- Existing Home Sales for February rose to 5.03M versus estimates of 4.85M and 4.89M in January.
BOTTOM LINE: Sales of existing homes in the US unexpectedly rose in February for the first time in seven months, Bloomberg reported. Sales rose in three of four regions, boosted by an 11% surge in the Northeast. The number of homes for sale fell 3%, bringing the inventory of unsold homes at the current sales pace down to 9.6 months’ worth from 10.2 months in January. According to Bankrate.com, the average 30-year fixed rate mortgage has fallen 50 basis points in less than two weeks to 5.62%. The median existing home price is now down 14.9% to $195,900 from the record highs set in July 2006. The Homebuilding Index is jumping 7.1% today and is breaking above its 200-day moving average for the first time since May of last year. I continue to believe overall home sales will surprise on the upside this spring on pent-up demand, lower prices, lower mortgage rates and diminishing credit market angst.
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