Fall in US home sales picks up pace in October

The number of completed transactions on home sales in the US fell 3.2 per cent in October, with the existing home sales index coming in at 5.12m. The reading follows September's drop of 1.9 per cent, to 5.29m.

Analysts had expected a fall of 2.6 per cent to 5.15m.

Paul Diggle, property economist at Capital Economics, comments:

The further decline in existing home sales in October is the result of the earlier hike in mortgage interest rates. The immediate outlook for existing home sales is negative, but the loosening in supply conditions is to be welcomed.

(Capital Economics)