U.S. home resales unexpectedly rose in November, reaching their highest level in nearly ten years. Bobbi Rebell reports.
Americans are on a shopping spree for homes, hurrying to lock in low interest rates. U.S. home resales unexpectedly rose in November, reaching their highest level in nearly ten years, according to the National Association of Realtors. Sales were up more than 15 percent from a year ago, the highest sales pace since February 2007. November numbers showed the third straight monthly increase. PwC's Mitch Roschelle: (SOUNDBITE) MITCHELL M. ROSCHELLE, PARTNER, PWC, (ENGLISH) SAYING: "Yellen signaled three potential increases. Each quarter point increase on a $200,000 mortgage is less than $40 a month, but if you start adding that up, that really starts to hurt the affordability equation. And affordability is probably the biggest headwind in the housing market right now." A separate report from the Mortgage Bankers Association showed applications for loans to buy a home increased three percent last week from the previous week. And on Tuesday, the Commerce Department said housing starts rose to a five-month high.