The sales of existing homes hit a 2-year high last month. That, along with an increase in new home sales, reflect signs that the housing market recovery is gaining momentum!
According to the National Association of Realtors, existing home sales increased by 7.8% - the fastest rate since the market was stimulated by the homebuyer tax credit in May 2010. In addition, the median price for existing homes rose 9.5%.
The sale of new homes, according to a separate report from the Commerce Department, increased by 2.3%. An increase that is expected to rise and contribute to the growth of the economy for the first time since 2005.
These signs along with the Federal Reserve’s new program to buy tens of billions of dollars in mortgage-backed securities is expected to keep the market moving in a positive direction – one that will climb well into 2013.
While the economy still struggles with unemployment, these improvements are sure to increase consumer confidence and demand. With average interest rates down to 3.72% for a 30-year fixed mortgage, consumers who had postponed buying in the last few years have begun moving into the housing market. This new data will surely continue that trend.
The average 30-year mortgage dropped to 3.94% last week according to Freddie Mac’s weekly rate survey released on Thursday. Freddie Mac says the rates are the lowest since its survey began in 1971 when rates for 30-year mortgages were as low as 4%, but not lower. This can result in considerable savings for buyers. Take advantage of the opportunity and contact a FARE Agent to get started!