WASHINGTON (AP) — Americans bought homes in October at the fastest pace in nearly decade, helped out by low mortgage rates that have since started to climb following the presidential election of Donald Trump.
"Clearly, the market continues to underestimate just how much demand for homes is out there, even in the face of tight inventory and rising existing home prices that are now the highest on record," said Svenja Gudell, chief economist at the real estate firm Zillow.
Investors expect the federal budget deficit to rise in a Trump administration, causing the yield on 10-year U.S. Treasury notes to reach roughly 2.3 percent.
The tighter credit standards have helped foster a housing market that prefers cash buyers and investors who may be more likely to rent homes to tenants than live in them.
