US existing home sales: largest one-month drop since 2010 – Wells Fargo

FXStreet (Córdoba) – According to analysts from Wells Fargo, today’s decline of more than 10% in existing home sales was partly due to a new disclosure rule.

Key Quotes:

“While January and February are typically the slowest months of the year for existing home sales, November was the third slowest month in each of the past two years. It is a slow period for sales, so modest moves can be overstated in the seasonal adjustment process. Also, sales in all four regions dropped off.”

“Despite the drop in sales, prices improved for both single- and multifamily which implies a special factor may be in play.”

“The October implementation of a new mortgage disclosure rule, the “Know Before You Owe TILA-RESPA Integrated Disclosure” or TRID, may have been a factor in today’s weak number. Mortgage applications plunged 27.6 percent in the first week of October, the largest weekly drop since 2009. Existing home sales are the executed contracts for home purchases, so a one or two month lag can reasonably be expected.”

According to analysts from Wells Fargo, today’s decline of more than 10% in existing home sales was partly due to a new disclosure rule.

(Market News Provided by FXstreet)