Home Sales Up for October

Home sales reported an increase of 10.1% in October.  This is not big news.  Several first time home buyers rushed out to purchase a home the past few months to take advantage of the $8,000 home buyer credit.  Guess what? November home sales should be high too.  Once the home buyer credit was extended to April 2010 the energy fueling the market to meet the November 1st deadline died.  That’s right.  Died.  Fewer homes are going on the market so inventory levels are down.  Buyers are taking a break and will likely enter the market again late January early February. 

What does this mean? You’ll probably see rates move higher as the stock market takes these recent home sale reports as an economic recovery boost.  By late Decedmber, early January the mismal economic news will return and we’ll probably see a dip in rates at the beginning of February.  Ofcourse…that’s just my opinion.