Economic Growth Up .5% to 2.5%. Existing Home Sales Down 2.2%, Median Price $171,100

GDP Increases .5% to 2.5%
Today’s second of three GDP readings for 3Q2010 showed that GDP increased .5%. The first reading last month was 2% and this reading was 2.5%. Normally better than expected economic data would cause bonds to sell and rates to rise, but the North/South Korea conflict and the Ireland debt crisis are causing mortgage bonds to rally so far today, bringing rates down slightly. In 2Q2010, GDP was 1.7%. The third of three 3Q2010 readings will be December 22.

October Existing Home Sales Stats
Sales of existing single family homes, townhouses and condos declined 2.2% in October after two months of strong gains. Year-to-date there were 4.149 million existing home sales, down 2.9% this time in 2009. The median existing single family home price was $171,100 in October, down 0.5% below a year ago. The median existing condo price was $166,000 in October, down 4.2% from October 2009. Distressed homes accounted for 34% of sales in October, compared with 35% in September and 30% of sales in October 2009. First-time buyers purchased 32% of homes in October, unchanged from September, but down from 50% a year ago during the initial surge for the first-time buyer tax credit. Investors accounted for 19% of transactions in October; they were 18% in September and 14% in October 2009; the balance of sales were to repeat buyers.