Home sales rose in October, a new report reveals, but remain far short of what economists say are needed for the real estate industry to mount a recovery.
According to the National Association of Realtors, existing-home sales increased 1.4 percent on a seasonally adjusted basis in October, jumping to an annual rate of 4.97 million from September's 4.9 million.
"Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents and high affordability conditions," said Lawrence Yun, chief economist for NAR. "Many people who are attempting to buy homes are thwarted in the process."
Moe Veissi, president of NAR, said this is largely because lending standards have tightened, making it more difficult for borrowers to be approved. He cautioned borrowers to pay their bills on time and to not use more than 30 percent of their credit limit. Doing these things should increase their odds of being approved.
Notes made in error on credit reports can adversely impact borrowers' chances of approval as well. Any discrepancies should be addressed by credit repair professionals.