Core Insights - Improvement in mortgage rates at the end of summer led to a boost in home sales, but this increase may be temporary [1] Sales Performance - Sales of previously owned homes in October increased by 1.2% from September, reaching 4.1 million units on a seasonally adjusted annualized basis, and were up 1.7% year over year [1] Contract Signings and Closings - The count of home sales is based on closings, which likely reflects contracts signed in August and September; however, closings may be affected by the government shutdown that began in October [2] Mortgage Rates - During the contract-signing period, the average rate on the 30-year fixed mortgage decreased from 6.63% at the start of August to 6.13% by mid-September, before rising again to 6.37% by the end of September, and currently stands at 6.36% [3] Inventory Levels - The inventory of homes for sale decreased to 1.52 million units, down 0.7% from September, although it remains nearly 11% higher than a year earlier; at the current sales pace, there is a 4.4-month supply, which is still considered lean [4]

Core Insights - Sales of previously owned U.S. homes increased solidly in August due to lower mortgage rates attracting buyers back into the market [1][2] - Pending home sales rebounded by 4.0% in August, surpassing economists' expectations of a 0.2% increase [1][2] - The annual increase in pending home sales was 3.8% compared to the previous year [2] Mortgage Rates and Economic Context - Lower mortgage rates are facilitating more homebuyers entering contracts, with the 30-year mortgage rate nearing an 11-month low [2][3] - The Federal Reserve cut its benchmark overnight interest rate by 25 basis points to the 4.00%-4.25% range, contributing to the decline in mortgage rates [2] - Despite the positive impact of lower mortgage rates, a weakening labor market may limit further gains in home sales, with job gains averaging only 29,000 per month over the last three months compared to 82,000 during the same period last year [3]