Sales of previously owned U.S. homes in August reached its highest level in six and a half years because buyers returned to the market in large numbers to ensure the costs of cheap credit , amid rising mortgage rates.
The National Association of Realtors (NAR , for its acronym in English ) said Thursday that sales of existing homes rose 1.7 percent last month to an annualized rate of 5.48 million units , the level highest since February 2007, when property values began to decline.
Economists polled by Reuters had forecast a rise to a rate of 5.25 million units in August . The housing recovery has helped prop up the economy to improve household finances and support consumer spending .
The NAR chief economist Lawrence Yun said the housing market may be experiencing a temporary maximum undecided because potential buyers are encouraged to close deals before a likely increase in borrowing costs .
"The rise in mortgage rates led to more buyers to close deals , but monthly sales are likely to be mixed in the coming months from various market frictions ," he said , pointing to a tight inventory limit the choice in various real estate sectors .
Mortgage rates have risen in recent months after hitting a low of 3.35 percent in May , according to Freddie Mac 's mortgage 30 year fixed rate was 4.5 percent as of September 19 close a maximum level in two years .
The Fed cited tougher financial conditions as a reason for its decision announced on Wednesday not to start reducing its stimulus package , a surprise to investors and economists who had expected a slowdown in the massive program of bond purchases .
Minor asset purchases have driven mortgage rates even more .
Last month, the inventory of unsold homes on the market rose slightly and the pace of August sales represented a 4.9 months supply , the NAR said .
"There is an ongoing shortage of homes ," said Yun , who added that he believes that to change.
The offer of the month remained below 6.0 months , which is usually considered a healthy balance between supply and demand . The U.S. housing market has been impacted by tight in some parts of the country inventories.
The median price of existing homes in August rose 14.7 percent year on year , to $ 212,100 .
The distressed properties , which may weigh on prices as they usually are sold at deep discounts , accounted for 12 percent of sales last month , the lowest level since the NAR began tracking the data in 2008.
Investors purchased 17 percent of homes in August and those who acquired a home for the first time accounted for 28 percent of transactions.
Rising home values and mortgage rates have begun to marginalize first buyers of the real estate market and affect affordability.
Walang komento:
Mag-post ng isang Komento