The home sales in the United States have risen unexpectedly in August to a 17-month peak after a second consecutive month which had gains. The lower rates of mortgages are encouraging the buyers to be active.
On Thursday, the National Association of Realtors has said that the existing rate of home sales has increased by 1.3% to an annual rate adjusted seasonally 5.49 million units in the previous months. Sale pace in July was unchanged in the 5.42 million units.
Economists had forecasted the home sales which exist declining to 5.37 million units which is a decline of 0.4%. Existing home sales are about 90% of the home sales in United States.
Decline in the mortgage rates throughout a large part of the summer has been helping the buyers. The Federal Reserve in the United States have cut rates of interest which is the first time it has done so in over a decade in the month of July and that has lowered the cost of borrowing again on Wednesday.
The 30-year rate of fixed mortgage has dropped close to 3.5% from a seven-year high that it reached in November which was 4.94%. Buyers have also benefitted from the economy that has low levels of unemployment, slower house price inflation and rising wages.
Home sales as a whole have been seesawing on the monthly basis for a larger part of the year as the struggle in the industry continues with lack of supplies, especially for the cheap homes.
Shortages in land and labor have also been curtailing the building although there have been signs of easing lately.
Data has shown that the homebuilding surged to an over 12-year high in the month of August.
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