Existing-Home Sales, Third-Quarter GDP: U.S. Economic Takeaways
- Realtors say plunge in home sales caused by delayed closings
- Yellen GDP gauge shows consumer, business spending are firm
What Are the Takeaways from Nov. U.S. Home Data?
What you need to know about Tuesday’s U.S. economic data:
The Takeaway: Economists are mostly discounting the November decline because the figure was affected by a change in mortgage processing rules that lengthened the time it took buyers to close on a deal. Lawrence Yun, the chief economist of the National Association of Realtors, called the slump a “statistical anomaly” and said he expects the sales rate to normalize in the coming months once lenders and title companies have had a chance to adjust to the new closing process. Fundamentals such as an improving job market and low borrowing costs should help prop up housing demand going forward, though faster wage growth will be needed to help pull in more first-time buyers, whose ranks remain near historical lows. NAR data show renters are saying a lack of affordability is the main reason keeping them from buying a home.