Now is the time to buy! Rates remain near historic lows, and the housing market showed marked improvement last month, further encouraging the case for a boom in housing activity this year according to Fannie Mae’s May 2015 National Housing Survey.
Contracts to purchase homes continued to grow in early spring. Pending home sales are 11 percent higher than one year ago and are at their highest since June 2013, according to March figures from the National Association of REALTORS® (NAR), whose reports have a two month lag time.
Demand is highest near and in major metropolitan areas experiencing economic growth. Even better news is traditional homebuyers appear to be replacing home investors, who typically buy homes with cash. Home prices are, however, increasing and homes are selling faster.
Rising home prices could be a pain point for some buyers. A limited supply of available housing inventory is to blame for driving up prices. NAR’s Chief Economist, Lawrence Yun, stated that in some parts of the country prices are increasing at a rate 4 or more times the pace of wage growth, which could prove difficult for prospective homebuyers and first-timers.
Home Buying Remains Sure and Steady
The increase in mortgage interest rates in the first weeks of May resulted in a decrease in total home loan applications. When compared to last year, home loan application volume is still higher, although it has fallen 10 percent over the past four weeks, according to figures from the Mortgage Bankers Association (MBA).
Of the total applications, the numbers were split nearly even between those wishing to buy homes, versus those refinancing existing loans. Many homeowners refinanced to try to take advantage of a lower interest rate or shorten the length of their home loans. The good news is that refinance opportunities are still available!
Current interest rates remain near historic lows and now may be the right time to purchase a new home or refinance your current loan. If you or anyone you know has questions regarding refinancing, or wants to get ahead of the home buying competition with a loan pre-approval, please get in touch today.
Information obtained from http://www.realtor.org/news-releases/2015/04/pending-home-sales-increase-in-march-for-third-consecutive-month and http://www.cnbc.com/id/102709442. This material is provided for information and educational purposes only. 068i0000001vGyb