According to recent data from the National Association of Realtors, existing home sales increased 6.5 percent to a seasonally adjusted annual rate of 5.39 million during the month of July. This spike continues a 25 month trend of year-over-year double digit increases of median home prices, factoring in single-family homes, townhomes, condominiums and co-ops.
Meanwhile from a buyer’s perspective, a 30 year, conventional, fixed-rate mortgage rose .3 percent from June and now stands at 4.37 percent. Unfortunately, this is the highest rate in past two years, “This increase pushed some buyers off the sidelines” said NAR Chief Economist Lawrence Yun. He continued by stating “The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.” Continue reading