The National Association of Realtors® (NAR) said this past Thursday that rising interest rates may finally be forcing many hesitant buyers into the market. NAR’s Pending Home Sales Index (PHSI) which is based on home purchase contracts, reached the highest in May that it has achieved since late 2006. NAR also announced it was upgrading its price forecast for 2013.
NAR’s chief economist Lawrence Yun said the recent rising interest rates may be creating a fence-jumping effect. “Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher,” he said. “This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.”
Yun said he expected the national median existing-home price to rise more than 10 percent to nearly $195,000 by year end. This would be the strongest increase since 2005 when the median increased 12.4 percent.
Existing-home sales are projected to increase 8.5 to 9.0 percent, reaching about 5.07 million in 2013, the highest in seven years; it would be slightly above the 5.03 million total recorded in 2007.
If you are looking to get “off the fence” and make a purchase and capitilize before mortgage rates may rise to high, contact On Q Financial, Inc. and learn how to do so today!
(Statistics and statements taken from Mortgagenewsdaily.com)