Existing home sales rise in October

Wells Fargo Research Team Wells Fargo

Summary

Existing home sales rose 1.2% to a 4.1 million-unit pace in October, the second straight monthly gain. Although resales remain sluggish relative to historical norms on account of adverse affordability conditions, activity has trended higher in recent months alongside a modest easing in mortgage rates. Increased supply is another support factor, with better availability pulling prospective buyers off the sidelines and keeping home price appreciation moderate.

October's gain in existing sales is consistent with the recent drift higher in mortgage applications for purchase, suggesting home sales will continue to gradually improve from a low level over the next several months. While there is further scope for improvement in the months ahead, we do not anticipate a strong rebound as elevated homeownership costs remain a constraint. What's more, the bulk of mortgaged homeowners still hold sub-5% mortgage rates, well below where mortgage rates currently prevail. Since we do not expect mortgage rates to ease much more over the next few years, the mortgage lock-in effect will likely continue to limit new supply.

Download the Full Report!

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD clings to strong gains above 1.1850 on USD weakness

EUR/USD preserves its bullish momentum to start the week and trades above 1.1850. The US Dollar struggles to find demand ahead of Wednesday's critical January employment report and helps the pair continue to push higher.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold holds steady above $5,000

Gold builds on the gains it posted to end the previous week and holds steady above $5,000 on Monday. Data released over the weekend showed that the People's Bank of China extended its Gold buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.