Existing Home sales declined for the second straight month - down 10.5% on a seasonally-adjusted basis. The annualized rate falls to 4.76 million units - the slowest pace in over 18 months. On a year-over-year basis existing home sales fell 3.8% - the first decline in 14 months.
In November, the inventory of existing homes for sale was 2.04 million units. Down 1.9% from a year ago. This represents a 5.1 month supply of homes and indicates inventory levels are still tight.
Some of this decline may be due to the implementation of the new "Know Before You Owe," also known as TRID, disclosures rules which began with new applications on or after October 3, 2015. These new regulations require new waiting periods after disclosures are sent to the borrowers and require a longer time period between application and consummation of the transaction. How much an impact TRID made on the existing home sales will be more clear in the coming months.
If you have any mortgage-related questions please contact me at BarkerLoans@gmail.com or 708.473.7688.
