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    US existing home sales rise at the strongest pace in more than 9 year - Wells Fargo

    Analysts from Wells Fargo, point out that today’s report that showed an increase of 1.8% in existing home sales to 5.53 million, was the strongest number since February 2007, representing solid numbers and buyers attracted by low mortgage rates.Key Quotes:“Home buyers appear to have ignored the conflicting signals on economic growth that have unnerved the financial markets and kept the Federal Reserve on hold. Sales of existing homes rose 1.8 percent in May to a 5.53-million unit pace. The extended run of lower mortgage rates is good news for the recovering housing market, which saw existing home sales rise to their strongest pace in more than nine years in May, even though for-sale inventories remain exceptionally low across much of the country.“The extended run of extraordinarily low mortgage rates is clearly bringing trade-up buyers back into the market. Many buyers might have been hesitant to given up their current low-rate mortgage that they refinanced into a few years ago, but now are looking at essentially the same mortgage rates that they were three years ago. Homeowners that refinanced a few years ago have likely built up significant equity in their homes, as a higher proportion of their mortgage payments has gone toward principal repayment and home prices have risen steadily.”“The total number of homes available for sale in May rose 1.4 percent from the prior month to 2.15 million homes. Sales rose even faster, however, which has kept the months’ supply at just 4.7 months. With inventories so lean, homes are selling quickly. The typical home stayed on the market for a median of just 32 days, which is down from 40 days last May.”

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