Prices and Supply Jump as Mortgage Rates Stabilize
Recent report from the National Association of Realtors reveals that the median price for existing home in June rose 13.5 percent from the same month of 2012. The increase was the 16th consecutive month rise. Also, the inventory of homes increased 1.9 percent but still 7.6 percent below the levels of last year.
Aside from the increase in home sales and inventory, mortgage rates were also reported to have stabilized. The conforming 30-year fixed-rate mortgage was 3.750 percent while the 15-year was 2.750 percent. The adjustable mortgage rates, in addition, were 2.375 percent. Still, lenders require a good credit rating before borrowers can avail of the low rates. On a related note, the home sales in June fell 1.2 percent but were still more than the levels in the same month of 2012.
The low mortgage rates should fuel more purchases. Despite the foreseen sluggish pace of sales, many are still confident about the continuing housing market recovery all across the country.
The recent increase in mortgage discouraged refinance applications. The activity for such mortgages dipped to 63 percent, its lowest since 2011.