NEW YORK (CNN/Money) - Sales of existing homes were little changed in October, according to a trade group report Tuesday that showed the measure of the real estate market's strength came in basically in line with Wall Street expectations.
The National Association of Realtors' report showed homes selling at an annual pace of 6.75 million, down 0.1 percent from the revised September sales pace of 6.76 million. Economists surveyed by Briefing.com had forecast sales would remain at the 6.75 million pace originally reported for September.
"The ongoing stimulus of lower-than-expected mortgage interest rates was the primary driver of strong home sales in October," said a statement from David Lereah, NAR's chief economist. "Of course all of the other market fundamentals remain sound, so we should only see a modest decline from record home sales this year if mortgage interest rates gradually rise."
The existing home sales data is based on when the home sales close. Since many if not most buyers lock in the interest rate at the time they're apply for a mortgage, often a month or two before the closing, the low rates in October and November should keep the home sales readings strong the rest of this calendar year.
The Freddie Mac survey of mortgage rates show the average rate for a 30-year fixed-rate mortgage at 5.74 percent last week, compared to a 5.72 percent average in October as a whole. Rates were 5.87 percent in August and 5.75 percent in September when many of the October buyers were locking in rates.
The low rates have helped to support home prices. The median existing-home price, which represents the point at which half the homes are more expensive and half less expensive, was $187,000 in October, up 8.8 percent from October 2003 when the median price was $171,800.
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