A dip in interest rates helped to fuel a strong October, bucking the typical seasonal slowdown. The number of homes placed under contract in October was up 2.2% from September, and the average sold price increased slightly, going from $331,382 in September to $332,184 in October.
The markets response to the interest rate increases in July, where rates jumped up to 4.6%, can be clearly seen in this chart on contract activity. While seasonally there should be a decline in these months, the steepness of the drop indicates there were other forces at work on top of the seasonal shift. The rebound in Sept/Oct, when rates backed down somewhat, helps reinforces the responsiveness of market activity to interest rates.