According to the NAR (National Associate of Realtors), home sales unexpectedly bounced up last month to the highest level in a year. The 3.3% rebound was substantially higher than the modest 0.5% that was expected and seems to indicate a steadying for residential real estate. In four of the past five months pending home sales have risen, and they’re now at the highest level since August of 2013.
NAR chief economist, Lawrence Yun said favorable housing conditions spurred increased contract activity last month. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012.” Yun continues, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”
In July, first-time homebuyers equaled 29 percent of home sales, which was a slight increase from June. The increase is welcomed, but is still well below the 40% average we enjoy in a strong real estate market. The housing recovery is dependent upon first-time buyers, since their purchases in turn help existing homeowners move on with purchases of larger homes.
Those low mortgage rates really make the active home inventory much more affordable, and is something potential home buyers, both first-time and experienced, should be watching. Taking advantage of the current low rates while they’re available is an obvious great bonus for purchasers. Cheaper money means more house for your dollars.
To see what mortgage rates are available to you right now, speak with your preferred lender or one of our mortgage resources here: Atlanta Mortgage Brokers/Lenders
