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Home Sales & Contract Signings Show Spike in March
Friday, May 11, 2012
The a recent report from Washington indicates the ailing housing market is gradually recovering. This was supported by the spike in the number of home mortgage loan contracts signed in March. In another positive report, the numbers stated that the average rate on a 30-year non variable mortgage dropped to one of the lowest rates on record. This is evidence that home-buying and purchases of refinancing is still within the budget of many home buyers.
Freddie Mac, the nations most notable second mortgage market, is quoted with 30 year loans being at an average of 3.88%, which is lower than the previous week rate of 3.9%. Although these rates are historically some of the lowest ever on record, February saw rates of 3.87% which is the lowest 30-year fixed home mortgage rate since these loans were initiated in the 1950s.
As the most popular type of home mortgage on the market, the 30-year is also the the most commonly purchased mortgage product sold by mortgage lenders. Even if home buyers knew that they could save thousands of dollars on a 15-year fixed rate mortgage, they are the second most popular at a rate o 3.12% and going even lower than the week before at 3.13%. The national average for these money saving mortgages was as low as 3.11% just a couple weeks ago.
Sell my house
is one of the associations in the home mortgage lending market where the National Associations of Realtors (NAR) often look to prequalify their buyers. With Sell my house
, and information on the mortgage market reflecting this upward trend in home sales, refinancing and interest rates creeping up, buyers could do well to move forward with plans to buy homes that they have been putting off due to economic uncertainty. NAR says that there were 4.1% more sales in homes last month, which was also an all time high since April 2010.
The inventory of homes for sale has also dropped. NAR shows that since 2007 in March there were 3.38 million homes for sale. Now in March of 2012 there are 2.37 million homes on the market. Foreclosures are still rising, however with some $25 billion in settlement debt that exist between mortgage agencies, federal and state officials. The number of contracts being signed by buyers is a strong indicator of the pace of improvement in the housing market. Usually there is a one to two month period between signing and closing. The sales numbers will be up in one to two months following this new activity increase.