Mortgage interest rates have risen since the Federal Reserve began signaling in May that it was planning to reduce its massive monetary stimulus this year, weighing on the rebound in the housing market.
And if the Fed decides to taper QE in the coming months, which I think they need to do to prevent (or try to prevent) another massive asset price bust fueled by market reflexivity, it will probably put more pressure on housing activity. (Previous post: Federal Reserve Discussed the Possibility of "Trimming the Pace of Purchases in Coming Months" (FOMC Minutes of 10/29-10/30 Meeting), $SPY Intraday Chart.)
Source: St. Louis Fed
US homes sales drop for second straight month (via AFP)
US existing-home sales fell for a second consecutive month in October as tight inventory continued to push up prices sharply, damping demand, the National Association of Realtors said Wednesday. Sales of previously owned homes fell 3.2 percent to an…